o nnual eport 2006 - University of Otago · Ko tä Te Whare Wänanga o Otägo he whanake, he pupuri, he whakatairanga hoki i te mätauranga, i te ihomatua tätari kaupapa, i te

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university of otago

annual rep ort

2006

university of otago annual rep ort 2006

2

university of otagoLeith Street, Dunedin

New Zealand

Mail PO Box 56, Dunedin 9054, New Zealand

Tel 64 3 479 1100

Fax 64 3 479 8692

Email [email protected]

Web www.otago.ac.nz

christchurchUniversity of Otago Christchurch School of Medicine and Health Sciences

2 Riccarton Avenue

Christchurch, New Zealand

Mail PO Box 4345, Christchurch 8140, New Zealand

Tel 64 3 364 0530

Fax 64 3 364 0525


wellingtonUniversity of Otago Wellington School of Medicine and Health Sciences

Mein Street, Newtown

Wellington South, New Zealand

Mail PO Box 7343, Wellington South 6242, New Zealand

Tel 64 4 385 5541

Fax 64 4 389 5725


University of Otago Stadium Centre

Westpac Stadium, Waterloo Quay, Wellington

Mail PO Box 400, Wellington 6140, New Zealand

Tel 64 4 460 9800

Fax 64 4 460 9801


aucklandUniversity of Otago Auckland Centre

University of Otago House

Levels 3 & 4, 385 Queen Street

Auckland, New Zealand

Mail PO Box 5543, Wellesley Street, Auckland 1141 , New Zealand

Tel 64 9 373 9700

Fax 64 9 373 9701


Published March 2007ISSN 1171-2708

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vision

A research-led University with an international reputation for excellence.

ko te aronga

He Whare Wänanga e Aronui ana ki te Rangahau, e Rongonui ana i ngä

Töpito o te Ao i te Ao i töna Ikeiketanga.

mission

The University of Otago will advance, preserve and promote knowledge,

critical thinking and intellectual independence to enhance the

understanding, development and well-being of individuals and society. It

will achieve this by building on foundations of broad research and teaching

capabilities, unique campus learning environments, its nationwide

presence and mana, and international links.

ko te uaratanga

Ko tä Te Whare Wänanga o Otägo he whanake, he pupuri, he

whakatairanga hoki i te mätauranga, i te ihomatua tätari kaupapa, i te

whakaaroaro motuhake o te tangata, e nui ake ai te möhio, te marama, te

hiatotanga, otirä, te oranga o te tangata, o te iwi hoki. E tutuki ai tënei mä

te rangahau me te tika märika o te whakaako, mä te whai wänanga ahurei,

mä te whakaü i töna mana, me öna toronga puta noa i te motu, i te ao.

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contents page

Vision and Mission 3

Locations 5

Council of the University 6

Executive Group 7

Organisation Chart 8

Chancellor’s Introduction 10

Vice-Chancellor’s Review 12

Key Events 17

Research and Postgraduate Teaching 19

Research Grants 19

Research Highlights 20

Advancement 21

Commercialisation 22

Other Research Developments 22

Postgraduate Teaching 23

Cost of Output 24

Teaching and Learning 26

Academic Developments 26

Enrolment 26

Undergraduate Scholarships 27

Internationalisation 27

Teaching and Learning Developments 28

Cost of Output 29

Community Service 31

Library Services 32

New Zealand Marine Studies Centre 33

The Arts 33

Alumni 33

Cost of Output 34

Statement of Service Performance 36

Statement of Resources 50

Human Resources 50

Physical Resources 51

Equal Opportunities 51

Capital Developments 55

Financial Review 57

Statement of Responsibility 59

Statement of Accounting Policies 60

Statement of Financial Performance 65

Statement of Movements in Equity 66

Statement of Financial Position 67

Statement of Cash Flows 68

Reconciliation of the Net Surplus from Operations 69

Statement of Commitments and Contingencies 70

Notes to the Financial Statements 71

Report of the Auditor-General 86

Summary Facts and Figures 89

Graphs 100

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auckland campusUniversity of Otago House

Executive Development Programmes

Course Information and Recruitment

Distance Education

Teaching & Conference Multimedia Facilities

wellington campusWellington School of Medicine & Health Sciences

Research and Clinical Training

Bachelor of Health Sciences (Radiation Therapy)

Postgraduate Courses

Distance Education

University of Otago Stadium Centre

Course Information and Recruitment

Clinical Training

Teaching & Conference Multimedia Facilities

Distance Education

christchurch campusChristchurch School of Medicine & Health Sciences

Research and Clinical Training

Postgraduate Courses

Distance Education

dunedin campusMain Campus

Divisions of

~ Health Sciences

~ Humanities

~ Commerce (School of Business)

~ Sciences

Administration

new zealand

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council of the university

mr l j brown mr b a aitken professor d c g skegg ms j a flood[secretary to council and registrar]

mr e w ellison dr j d palmer ms k m smith mr j f ward associate professor j r broughton

professor s j todd professor a m wheatley miss l p isaacs ms n k walmsley mr s j mclauchlan

ms k a smith mr p y y chong mr s j r sutton mr p w h chin mr m j m sidey

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executive groupVice-Chancellor Professor D C G Skegg OBE BMedSc MB ChB(Otago)

DPhil(Oxon) FFPHM FAFPHM FRSNZ

Deputy Vice-Chancellor (Academic & International) D Gareth Jones CNZM BSc(Hons) MB BS(Lond) DSc(W Aust)

MD (Otago) CBiol FIBiol

Deputy Vice-Chancellor (Research) K Geoffrey White BSc PhD(Otago) FNZPsS FAPS FRSNZ

Chief Operating Officer A John Patrick BCom(Otago) CA CMA

Pro-Vice-Chancellor (Commerce) Alan C MacGregor MBA (Cranfield) PhD (Otago) FCA

Pro-Vice-Chancellor (Health Sciences) Don M Roberton MB ChB MD(Otago) FRACP FRCPA

Pro-Vice-Chancellor (Humanities) Alistair G Fox MA(Cant) PhD(W Ont)

Pro-Vice-Chancellor (Sciences) Vernon A Squire Polar Medal BSc(Hons)(Wales) PhD(Cantab)

DSc(Wales) FRSNZ FIMA CMath FNZMS

Director of Human Resources Kevin J Seales BCom(Cant) MHRINZ

Secretary to the Council, and Registrar Jan A Flood DipPhEd(Otago)

officers of the universityChancellor Lindsay J Brown BCom(Otago)

Pro-Chancellor Bruce A Aitken LLB(Otago)

Vice-Chancellor Professor D C G Skegg OBE BMedSc MB ChB(Otago)

DPhil(Oxon) FFPHM FAFPHM FRSNZ

Secretary to the Council, and Registrar Jan A Flood DipPhEd(Otago)

councilAppointed by the Minister of Education Edward W Ellison James D Palmer BA(Hons) LLB(Hons)(Otago) LLM((Harv)

DPhil(Oxon) Kereyn M Smith DipPhEd (Otago) John F Ward BCom(Otago) CA

Elected by the academic staff John R Broughton ED BSc(Massey) BDS(Otago) Sarah J Todd BA(Massey) MCom PhD(Otago) Antony M Wheatley BSc(Hons) (NUI) PhD(Dub)

Elected by the Court of Convocation Bruce A Aitken LLB(Otago) Lindsay J Brown BCom(Otago) Lorraine P Isaacs MA(Otago & Hawaii)

Elected by the general staff Nicola K Walmsley BSc(Hons)(Otago)

Appointed after consultation with central organisation of employers Stuart J McLauchlan BCom(Otago) CA

Appointed after consultation with central organisation of workers Kristine A Smith BA(Otago) RPN

Appointed by the Students’ Association Paul Y Y Chong Steven J R Sutton

Appointed by the Dunedin City Council Peter W H Chin CNZM LLB(Otago)

Co-opted Michael J M Sidey BCom(Otago) ACA

Ex Officio Vice-Chancellor


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organisation chart

Science

Council

Vice-Chancellor

Deputy Vice-Chancellor(Academic and International)

Deputy Vice-Chancellor(Research)

Pro-Vice-Chancellor(Commerce)

Pro-Vice-Chancellor(Health Sciences)

Pro-Vice-Chancellor(Humanities)

Pro-Vice-Chancellor(Sciences)

School of Business

Departments (8)

Faculty ofMedicine

School ofPhysiotherapy

Faculty ofDentistry

School ofPharmacy

Faculty ofArts and

Social Sciences

School ofMäori, Pacific

and IndigenousStudies

School ofPhysical

Education

School ofSurveying

Departments(13)

Centre(1)

Departments(12)

Departments(4)

OtagoSchool ofMedicalSciences

ChristchurchSchool of

Medicine andHealth

Sciences

DunedinSchool ofMedicine

WellingtonSchool of

Medicine andHealth

Sciences

Departments(5)

Departments(10)

Departments(6)

Departments(9)

Chief Operating Officer

DirectorHuman

Resources

Secretaryto Council

and Registrar

Faculty ofLaw

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chancellor’s introduction

I am honoured to present the 2006 Annual Report of the University of Otago.

The University has continued to make very good progress, due in no small measure to the excellent

leadership of our Vice-Chancellor, Professor David Skegg. A highlight was the formal adoption by Council

of the Strategic Direction to 2012 document which sets out clear, challenging and exciting imperatives for

the whole University community to embrace. Council looks forward to making its contribution to, and

monitoring the overall progress towards, achieving these strategic imperatives.

A major milestone was the completion of the negotiations, approvals and planning for implementation

of the merger with the Dunedin College of Education effective from 1 January 2007. This was a very

demanding exercise on top of the other duties of those engaged in the process, and I commend all those

involved in both institutions in bringing this about for their hard work, high level of goodwill and

pragmatism.

Financial performance for the year was again pleasing, with the University recording a net surplus of

$16.65 million. The consolidated surplus for the University and its associated Trusts and companies of

$30.45 million appears most impressive. However, it includes at least $10.5 million of Trust donations

which are not available to go towards operating expenditure, but which, under generally accepted

accounting practice, must be reported as income. We are most grateful to donors for their generosity,

and the income earned on donated funds will be available in future years to fund the operating costs of a

number of very worthwhile initiatives. Excluding these donations results in a “normalised” consolidated

surplus of approximately $20 million.

In the 2005 Annual Report I referred to the need to prioritise and fund significant expenditure over the

next few years if we are to provide the facilities expected of an internationally-respected University. The

major step forward in progressing this in 2006 was the substantial extension of our Wellington campus

facilities for first use in 2007 by our medicine and health sciences students and staff.

In March, Council adopted the recommendations of a Working Party on Student Behaviour (comprising

Council, staff and student representatives). Subsequently a number of measures were approved and

implemented, including the adoption of a Code of Conduct covering the standards of behaviour expected

of all students. While the best aspects of the rather unique and famed University of Otago campus

lifestyle must be retained and enhanced, the University has sent clear messages that it has a public voice

on issues of relevance to student behaviour. We are increasing resources to manage such issues, and will

continue to work constructively with others in achieving positive outcomes for the University and wider

communities.

Graduations are always highlights of the University year. In 2006 we held seven ceremonies, plus a small

special ceremony to award a degree posthumously to a recently-deceased graduand. We were delighted

to honour two distinguished graduates with the award of honorary degrees – Dr Beryl Howie (Honorary

Doctor of Science) and Professor Malcolm Grant (Honorary Doctor of Laws).

On behalf of Council I extend our grateful thanks to staff, students, funders, alumni, supporters and

other stakeholders for their valued contributions to the University’s achievements. Councillors (from

the communities of Dunedin, Invercargill, Christchurch and Wellington) had another busy year. It was

a pleasure to hold our October Council meeting in Christchurch, and in 2007 we intend to hold one

Council meeting in Invercargill and another in Wellington. This is appropriate as we are a multi-campus

national University.

I am most appreciative of the valuable contributions of our Councillors, including their participation in

Council meetings, committees of Council, working parties, boards of University companies, informal

discussions and as representatives of Council at various events. At the end of 2006, we farewelled five

Council members. While acknowledging them all, I make special reference to Bruce Aitken for his sterling

contribution to Council matters over 22 years, including the last three as Pro-Chancellor.

Lindsay Brown

Chancellor

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vice-chancellor’s review

The year 2006 was an excellent one for the University of Otago. The educational opportunities offered

by this University continued to attract students from throughout New Zealand and internationally;

outstanding research was carried out; and members of the University were involved in many kinds

of community service. While Otago faces the resource constraints that are shared by all research-led

universities in New Zealand, there was also significant progress in improving our capacity to contribute

as a world-class university.

After extensive consultation, the Senate and Council endorsed a strategic direction document that

is intended to chart the course of the University until the year 2012. The main aim is to give greater

emphasis to excellence in research and teaching, and to the special character of the University of Otago.

Our Strategic Direction to 2012 identifies six major imperatives, and my review of the year will be organised

under these headings.

achieving research excellence

A 2006 report from the Ministry of Research, Science and Technology concluded that Otago is New

Zealand’s most research-intensive university. There are two main reasons why we consider this to be

important. First, university teaching is more effective and inspiring in a research-rich environment.

Secondly, the research conducted by universities is crucial for the future of New Zealand, as well as

contributing to international progress. This may seem most obvious in the case of scientific and medical

research, but it is equally true for the humanities and commerce. One could mention, as examples, the

work of our new Humanities Research Cluster on Poverty, Inequality, and Development – and the capacity

of experts in our School of Business to improve the economy and to promote good business practice.

The number of research outputs produced by each of the academic divisions increased during 2006.

The total number was 7% higher than in the previous year and 50% higher than in 2003. The research

contributions of our academics cover a prodigious range of fields, so it is not possible to summarise these

here. Nevertheless, some of the highlights are mentioned elsewhere in this Annual Report. The University

of Otago, along with Auckland University, is now one of the two largest research organisations in New

Zealand. It was pleasing that Otago was again successful in obtaining the largest number of research

contracts from the prestigious Marsden Fund, which supports fundamental and innovative research.

Substantial research funding was also obtained from other sources, including the Health Research

Council, the National Heart Foundation and the United States Centers for Disease Control.

Despite these achievements, the paucity of research funding in New Zealand continues to hamper our

development as a world-class research university. While nearly everyone pays lip service to the fact that

research is essential for social progress and for a knowledge economy, New Zealand’s investment in

research continues to languish behind that of leading OECD countries. This regrettable situation was

compounded in 2006 by a change in Government policy that makes it impossible for universities to

compete for some of the funds allocated by the Foundation for Research, Science and Technology.

Given the intensity and quality of Otago’s research, it is anomalous that this University does not act as the

host for any of the Government-funded Centres of Research Excellence. During 2006 the Government

announced that it would establish two further centres. After extensive planning and scrutiny, the

University submitted 10 proposals for new Centres of Research Excellence (more than any other

university). While each of these is led by an internationally-distinguished researcher from Otago, they all

involve strong collaborations with colleagues in other universities and Crown Research Institutes. The

proposals (which are listed on page 23) illustrate the scope and relevance of major research programmes

at this University.

I believe that postgraduate research students form the lifeblood of any research university. It is therefore

pleasing to note that a record number of PhD degrees were completed in 2006 and that the number of

students enrolled in PhD study was 12.8% higher than in the previous year. The recruitment of research

students from overseas has been assisted by a welcome change in Government policy, in that international

PhD students are now charged the same fees as those from New Zealand.

One of the most exciting research developments has been Otago’s Leading Thinkers initiative, in which

generous endowments from donors and sponsors (matched by funds from the Government, under the

Partnerships for Excellence scheme) enable the University to attract and/or retain outstanding researchers

or scholars. As recorded on pages 21 and 22, the capital invested in this initiative doubled in 2006 to over

$42 million, with the establishment of several new chairs and fellowships.

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achieving excellence in research-informed teaching

This University takes great pride in the quality and range of teaching programmes that it offers. The

reputation of an Otago education underpins the ability of the University to attract students from far

afield. It is noteworthy that only 20% of first-year students come from Dunedin (with another 11%

from elsewhere in Otago and Southland). The section on Teaching and Learning in this Annual Report

(commencing on page 26) outlines many new academic developments and records some of the initiatives

taken to ensure quality teaching.

The University is committed to favouring developments that involve a strong research-teaching synergy.

This is relevant to the most significant academic development during 2006, which was the decision

to proceed with a merger between the University and the Dunedin College of Education. The merger

will ensure that teachers will join most other professionals in being educated in the research-led

environment of a university. I am very grateful to the many staff of the University and the College who

worked constructively to resolve the numerous academic, staffing and practical issues that are inevitably

associated with any merger. Under the leadership of its newly appointed Dean, Professor Helen May,

the University of Otago College of Education will build on and enhance the long tradition of teacher

education in Dunedin.

In July 2006 the University hosted an audit team from the New Zealand Universities Academic Audit Unit.

The unit has been auditing all New Zealand universities, with a focus in the present cycle on teaching

quality, programme delivery, and the achievement of learning outcomes. A valuable part of this exercise

was our self-review that led to the preparation of a portfolio in advance of the audit. This identified a

number of improvement initiatives that the University intends to carry out. The audit team spent five

days at Otago’s Dunedin and Christchurch campuses, speaking to about 200 people, including external

stakeholders. The report of the audit team commended the University for its collegiality and strength

of communication between the University community and the senior executive, and for the progress

made in responding to Treaty of Waitangi commitments. It also commented on the University’s strong

reputation for high-quality education, as well as the processes that are in place to assure this quality,

its student facilities, and the lively and distinctive campus life. The audit team also made a number of

recommendations which will be considered carefully.

During 2006 the University enrolled 17,449 equivalent full-time students (EFTS), from a total roll of

just under 20,000. This represented a 1.6% decline from 2005, with the roll being almost identical to

that in 2004 and higher than in any earlier year. Most of the change from 2005 was due to a smaller

number of international students, especially from China. The decline in enrolments from China has been

experienced by all New Zealand universities and, in fact, Otago has been relatively protected by its policy

of limiting the number of international enrolments from any one country to 3% of the total roll.

Among our strategic objectives is the aim to recruit a higher proportion of “top calibre” entrants and a

higher proportion of postgraduate students, especially research students. We now offer a scholarship to

the dux of every high school in New Zealand (and certain Pacific countries). In 2006, the first year of this

scheme, 90 duxes (including one from Niue) took up this opportunity. The number of scholarships for

PhD study was increased, and the University also announced the establishment of 50 new scholarships

for “Leaders of Tomorrow” – students who have shown leadership potential at school or through their

contributions to the wider community. As with the dux scholarships, these new awards provide both

financial assistance and the guarantee of a place in one of our residential colleges.

ensuring outstanding campus environments and student experience

The University of Otago is famous for its exceptional campus environment and student experience,

centred on Dunedin, and also for its specialist facilities in Christchurch, Wellington and Auckland.

Feedback from employers supports the view that the special Otago learning experience, in which students

develop through their wider university life as well as their studies, is reflected in their intellectual and

personal maturity and adaptability. The University is determined to ensure that the physical and cultural

environment at each of our campus sites is safeguarded and improved.

The University has embarked on a programme of capital developments, with a Critical Space Plan that

has been approved by the Council. Projects completed during the last year include the creation of study

space for postgraduate students in the University Union, redevelopment of the Union kitchen, a superb

new building for Te Tumu (the School of Mäori, Pacific and Indigenous Studies) and a major expansion

of Arana College. Significant developments have also continued at our Christchurch campus, while a


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new building at the Wellington School of Medicine and Health Sciences will provide additional teaching,

library and administration space.

In the last three years, the University has spent more than $30 million in expanding and enhancing the

facilities at University College and Arana College, providing an additional 264 bedrooms. More than half

of the students who come to Otago start their campus life in a residential college. During 2006 the six

existing halls of residence – Arana, Carrington, Cumberland, Hayward, Salmond and Studholme – decided

to change their names to “colleges”. They joined six existing residential colleges – Aquinas College, City

College, Knox College, St Margaret’s College, Selwyn College and University College. The reason for this

change was to reflect more accurately the role that the colleges play in providing academic and pastoral

support, as well as accommodation for students. Together with Toroa International House, the colleges at

Otago provide a residential learning environment that is unparalleled in this part of the world.

During 2006 there was much discussion about the possible construction of a multi-purpose stadium

(to replace Carisbrook) on a waterfront site adjacent to the University campus. It is envisaged that this

stadium would also include a base for University activities. Under a joint Memorandum of Understanding,

the University has worked closely with the Carisbrook Stadium Trust to investigate the feasibility of

such a development. The key decisions have to be taken by the Dunedin City Council and the Otago

Regional Council, but there is no doubt that having a stadium alongside the campus would be a wonderful

opportunity for the University. It is clearly understood that the University cannot invest in turf or seats,

but we would be interested in building and occupying space in the proposed complex which would

otherwise have to be provided in a new University building in another part of north Dunedin. It is likely

that the site would be developed as the campus centre for student fitness, health and recreation, as well as

for educational activities.

While boisterous behaviour is a feature of all residential universities, there has been concern about

disorderly conduct by a small minority of students in north Dunedin. Following the recommendations

of two working parties, which included representatives from the Otago University Students’ Association,

a Code of Student Conduct was adopted for introduction in 2007. The University also strengthened its

Proctor’s Office with the appointment of a Deputy Proctor, and planned for the introduction of Campus

Watch teams in 2007. The University will ensure that all students enjoy a safe environment, and that the

exceptional relationship between this University and its local community is not impaired.

contributing to the national good and to international progress

All universities contribute to society by providing education that helps people to reach their full potential,

and by advancing knowledge. The University of Otago has made a particular commitment to encourage

developments that support regional and national development, or the needs of the developing world.

One way in which this can be achieved is through the endowment of new research chairs. Two examples

from our Advancement Campaign in 2006 illustrate this. First, the Alexander McMillan Trust endowed a

Chair in Childhood Studies. This will allow our Children’s Issues Centre to maintain and enhance its role

in conducting research and contributing to public policy on the rights and welfare of children – a crucial

issue for the future of New Zealand. Secondly, the Sisters of Mercy and Mercy Hospital Dunedin decided

to endow a Chair in International Health. The person appointed will lead a new Centre for International

Health which will conduct research in developing countries including those in the Pacific region.

One of the objectives of the internationalisation of our curriculum is to ensure that students gain an

awareness of international issues. We were delighted to announce in November that Otago has been

chosen for a pilot study between the University and Volunteer Service Abroad. This will enable carefully

selected students to work in sustainable development in some of the world’s poorest countries. In the first

year of this scheme, eight students from our Department of Geography will spend a year on assignments

in South Africa, Tanzania, Cambodia, Bougainville and Vanuatu.

In the New Zealand of the future, Mäori and Pacific Islands people will form an increasing proportion of

the population. The social and economic future of this country will be crucially dependent on ensuring

that these groups enjoy good access to (and success in) higher education. It is pleasing to note that the

numbers and proportions of Mäori and Pacific Islands students are increasing at the University of Otago.

In 2006 we welcomed the first recipients of the new undergraduate scholarships that are offered to 30

promising Mäori and Pacific Islands secondary school students.

The more than 1,350 Mäori students at Otago come from many iwi in all parts of Aotearoa. While the

University’s primary Treaty-based partnership is with Ngäi Tahu, we are also keen to develop closer links

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with other iwi groups. In July the University signed a Memorandum of Agreement with Te Runanga

o Ngati Whatua at a ceremony in our Auckland Centre. The University’s Mäori Centre provides vital

support for the academic and social needs of Mäori students.

The Pacific Islands Centre offers similar assistance and advice for Pacific students from New Zealand and

from the islands. An important development in 2006 was the establishment of a Pacific People’s Reference

Group which will advise the University on how we can best respond to the needs of Pacific peoples. This

group includes New Zealand’s first Pacific member of the judiciary, Judge Epati, an Otago graduate who

is based in South Auckland.

strengthening external engagement

The University of Otago now enjoys excellent relationships with regional bodies such as the Dunedin City

Council, and also aims to engage more effectively with national bodies. We want to raise awareness of our

capabilities in research, and be more involved in applied research and commercialisation. Collaborative

partnerships and other arrangements that assist in the application of research will be important in this respect.

A good example is the strategic partnership announced in July with AgResearch, which is New Zealand’s

largest Crown Research Institute. This will involve the establishment of a joint Centre for Reproduction and

Genomics, supported by the newly endowed AgResearch Chair in Reproduction and Genomics.

Another new development that will assist engagement with the New Zealand public is the creation of a Centre

for Science Communication. This has been made possible by a major donation from the Stuart Residence

Halls Council, establishing New Zealand’s first Chair in Science Communication. Building on existing

activities such as our renowned Diploma in Natural History Filmmaking, this new centre will provide an ideal

channel for the University to share its knowledge across the whole range of science with the community.

building and sustaining capability

In order to achieve its goals, the University needs to secure sufficient resources and use these effectively

and efficiently. New Zealand universities have a low income per student compared with similar

institutions overseas. Through the New Zealand Vice-Chancellors’ Committee, we have continued to

urge the Government to increase its investment in universities. There is abundant evidence that this

would promote economic development and produce other benefits.

The University manages its resources carefully and remains in a sound financial position. The operating

surplus in 2006 ($16.650 million) was similar to that in 2005, and met the guidelines issued by the Tertiary

Advisory Monitoring Unit. In order to obtain adequate resources for capital developments, we need to

continue to move towards the new target set by the University Council. This is to achieve a five-year

moving average operating surplus equal to 2% of net assets.

A very welcome announcement in December was the decision by the Government to boost the funding

provided for medical and dental education. This additional funding should ensure the future of world-

class medical and dental education in New Zealand, with important enhancements such as increased

opportunities for learning in community and rural settings.

Staff in most universities complain that resources are wasted because of excessive bureaucracy. Professor John

Smillie convened a working party to review administrative processes in the University, with the aim of

eliminating unnecessary bureaucracy. The working party received many submissions and produced an excellent

report. Some of its recommendations have already been implemented and others are still being considered.

Recently an experienced University President in the United States wrote that everything he knew about

colleges and universities had told him “that you build institutional strength on the quality of the faculty;

nothing can substitute for it”. The University of Otago continues to be extremely fortunate in the quality

of the academic and general staff that it is able to attract. Moreover, as Professor Malcolm Grant (who

heads University College London) commented in his graduation address in December: “Few universities

today command the loyalty of staff in the way that Otago does.”

I wish to record my thanks to all of those staff, and especially to the members of my Advisory Group. I am

also grateful to the Chancellor and the other members of the University Council, who provide a quality

of governance that would be the envy of any tertiary institution.

Professor David Skegg

Vice-Chancellor


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key events

senior appointments 2006

Professor Peter Anstey to the new Chair in Early Modern Philosophy.

Professor George Benwell as the Dean of the School of Business and Pro-Vice-Chancellor Commerce.

Dr Michael Boyes as Acting Dean, School of Physical Education.

Professor Stephen Duffull to a Chair in Clinical Pharmacy.

Professor Michael Eccles to the New Zealand Institute for Cancer Research Trust Chair in Cancer

Pathology.

Professor Brendan Gray to a Chair in the Department of Marketing, School of Business.

Professor Peter Joyce as Dean of the Christchurch School of Medicine and Health Sciences.

Professor Peter Kuch to the Eamon Cleary Chair in Irish Studies.

Professor Alan MacGregor as Dean of the School of Business and Pro-Vice-Chancellor Commerce for

2006.

Professor Helen May as the Foundation Dean of the University of Otago College of Education.

Professor Helen Nicholson as Dean of the Otago School of Medical Sciences.

Professor Ann Richardson to the Chair in Public Health, Christchurch School of Medicine and Health

Sciences.

Professor Stephen Robertson to the Cure Kids Chair in Child Health.

Professor Sarah Todd as the University’s first Pro-Vice-Chancellor (International).

emeritus professors

The following professors were granted the status of emeritus professor:

Professor David Buisson, Professor Martin Ferguson, Professor Chris Heath, Professor Linda Holloway,

Professor Jim Hood, Professor Elizabeth Isichei, Professor Brian Robinson, Professor Alastair Rothwell,

Professor Richard Sainsbury and Professor Anne Smith.

professorial promotions

The following staff were promoted to full professor:

Christopher Ackerley (English), Rex Ahdar (Law), Roger Bartlett (Physical Education), Antony Blakely

(Public Health, Wellington School of Medicine and Health Sciences), Richard Cannon (Oral Sciences,

School of Dentistry), James Higham (Tourism), Steven Jackson (Physical Education), Wing Lai

(Education), Robert Patman (Political Studies), Richie Poulton (Preventive and Social Medicine), Murray

Skeaff (Human Nutrition), Sarah Todd (Marketing) and Timothy Wilkinson (Medicine, Christchurch

School of Medicine and Health Sciences).


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The following staff were appointed to associate professor:

Vicky Cameron (Medicine), David Clark, (Pharmacology and Toxicology), Stephen Dawson (Marine

Science), Kevin Dew (Public Health), Julian Eaton-Rye (Biochemistry), André Everett (Management),

Claire Freeman (Geography), Robin Gauld (Preventive and Social Medicine), Andrew Geddis (Faculty

of Law), Paul Hansen (Economics), Tony Harland (HEDC), Sally McCormick (Biochemistry), Andrew

Moore (Philosophy), Jing-Bao Nie (Medical and Surgical Sciences), Winsome Parnell (Human Nutrition),

Philip Pattemore (Paediatrics), Michael Paulin (Zoology), Miriam Rademaker (Medicine), Elaine Reese

(Psychology), Alison Rich (Oral Diagnostic and Surgical Sciences), Clare Robertson (Medical and

Surgical Sciences), Elisabeth Slooten (Zoology), Roy Starrs (Languages and Cultures), Vernon Ward

(Microbiology and Immunology), James White (Geology) and Michael Williams (Medical and Surgical

Sciences).

senior retirements

Professor Alan MacGregor, Pro-Vice-Chancellor (Commerce) and Dean of the School of Business.

Professor Linda Holloway, Pro-Vice-Chancellor (Health Sciences).

honorary degrees

In May, the University conferred an Honorary Doctor of Science degree (HonDSc) on Dr Beryl Howie.

In December, the University conferred an Honorary Doctor of Laws degree (Hon LLD) on Professor

Malcolm Grant, the President and Provost of University College London.

honours

Associate Professor Anne Bray (Health Sciences), Dr Roger Collins (History), Emeritus Professor Robin

Fraser (Christchurch School of Medicine and Health Sciences), Professor Anthony Molteno (Medical

and Surgical Sciences) and Emeritus Professor Alastair Rothwell (Christchurch School of Medicine and

Health Sciences) were made Officers of the New Zealand Order of Merit.

Mr Gordon Sanderson (Medical and Surgical Sciences) was made a Member of the New Zealand Order

of Merit.

Stuart Strachan (Hocken Collections) and Dr Lance Jennings (Christchurch School of Medicine and

Health Sciences) were awarded the Queen’s Service Order.

��

research and postgraduate teaching

The University of Otago strives for research excellence across all disciplines, fostering a strong research

culture in its departments and schools. This was recognised in 2006 by the Ministry of Research, Science

and Technology which named Otago as New Zealand’s most research-intensive university.

This is significant for a number of reasons: research underpins quality teaching and professional training;

it is key to the development of national and international reputation; and is vital for the advancement of

knowledge.

The University is in the process of revising its research plan, built around four main objectives:

Enhancing research excellence and productivity

Producing excellent research-degree graduates

Promoting research partnerships with Mäori

Promoting research as a community benefit.

Key areas of focus in 2006 were:

Performance-Based Research Funding. A partial PBRF round was held in 2006 with about 700

evidence portfolios prepared and submitted for evaluation. PBRF will be fully implemented in

2007, with additional funding to be used to reward existing excellence and develop future research

capacity.

The preparation of bids for new Centres of Research Excellence. The final decisions will be made by

Government in mid-2007.

The Leading Thinkers Programme, which continued to build on its past success. This is reported in

detail later in this section.

Providing better enterprise support for basic and applied research, and developing commercial

applications and activity. This, too, is covered in more detail later in this section.

Developing further collaborative research links with key partners including other universities, both

nationally and internationally, industry and Crown Research Institutes.

The signing of a Memorandum of Understanding with AgResearch Limited.

Harnessing internal synergies to build new clusters of excellence based on existing and emerging

areas of expertise.

Increasing research-degree enrolments, improving postgraduate student facilities and increasing the

graduate research completion rate.

Consulting to facilitate Mäori participation in research, research of specific relevance to Mäori and

cultural safety in research that includes a Mäori perspective.

Capitalising on the community benefits of research through consultancy and translational research,

and through commercialisation.

research grants

Otago researchers were once again successful in the highly competitive Marsden Funding round, gaining

nearly $11 million to fund 18 innovative projects. This was more research contracts than those received

by any other institution.


20

Projects included research into male brain development (Associate Professor Ian McLennan, Anatomy and

Structural Biology), the colonisation of the new Oceania (Professor Glenn Summerhayes, Anthropology),

and lasers which work as optical tweezers for microscopic particles (Dr Warwick Bowen, Physics), the

neuroeconomics of choice behaviour (Associate Professor David Bilkey, Psychology) and the extended

mind in early modern England (Professor Evelyn Tribble, English).

The University was also very successful in the 2006 Health Research Council (HRC) funding round,

winning $26 million for 20 different contracts in areas of research such as cancer, schizophrenia, fertility,

diabetes, Parkinson’s disease, weight-loss maintenance, depression, asthma and heart disease. This

represented 42% of the total HRC pool.

Among these was a $1.9 million grant for a new HRC programme examining the neuroendocrine

regulation of fertility, led by Professor Allan Herbison (Physiology). The Dunedin Multidisciplinary

Health and Development Research Unit, led by Professor Richie Poulton, received $3.9 million for

research into the development of risk for chronic disease, and a $5.9 million programme extension went

to Professor Anthony Reeve’s team (Biochemistry) for work on the genetics and epigenetics of cancer.

In later grants, the HRC awarded an additional $2.3 million for research into medication for treating

rheumatoid arthritis (Dr Lisa Stamp) and the effectiveness of antidepressants in primary-health care (Dr

Dee Mangin) both at the Christchurch School of Medicine and Health Sciences.

Teams from the University’s Departments of Biochemistry and Anatomy and Structural Biology also won

funding from the HRC’s International Investment Opportunities Fund to build collaborative partnerships

with researchers in the United States.

A further two projects, led by Professor John Tagg (Microbiology) and Dr Allan Blackman (Chemistry),

gained research funding under an agreement between the New Zealand and French governments. The

Dumont d’Urville Collaborative Science and Technology Support Programme was established in 2005 to

promote greater collaboration, particularly in the areas of biotechnology and nanotechnology.

In December the United States Centers for Disease Control awarded an Otago team led by Dr Michael

Baker (Public Health, Wellington School of Medicine and Health Sciences) $1.6 million to investigate

measures to control the spread of pandemic influenza.

In the 2006 National Heart Foundation of New Zealand funding round, Otago researchers were awarded

five major project grants and six small project or individual grants, totalling more than $670,000.

The Child Cancer Research Group at the Christchurch School of Medicine and Health Sciences received

a significant boost with a $357,000 grant from the Child Cancer Foundation. A total of 137 University

of Otago Research Grant applications were succesful for the 2006 funding year and a further 122 were

approved for 2007.

research highlights

Research is the driving force behind academic activity at the University of Otago. There were many

outstanding successes and achievements by Otago’s staff and students in 2006, only a few of which can

be mentioned here.

The University’s highest honour, the Distinguished Research Medal, was awarded to world-leading

biochemist and molecular biologist Professor Warren Tate (Biochemistry). Professor Tate’s research career

spans 38 years, specialising in protein synthesis and, more recently, the molecular basis of memory.

Psychology senior lecturer Dr Jamin Halberstadt was awarded the University of Otago’s Rowheath Trust

Award and Carl Smith Medal for 2006, which recognise outstanding research performance of early

career staff. He also received the New Zealand Association of Scientists’ Research Medal for outstanding

research in social psychology.

Otago’s commitment to the development of research programmes within the University was further

reinforced with the announcement of six Early Career Awards for Distinction in Research. The recipients

were Dr Peter Dearden (Biochemistry), Dr Takashi Shogimen (History), Jacinta Ruru (Law), Dr Jonathan

Walters (Zoology), Dr Jacob Edmond (English) and Dr Blair Blakie (Physics).

2�

Research excellence was again highlighted by the success of Otago students in the 2006 MacDiarmid

Young Scientists of the Year awards. PhD student Wendy Imlach (Pharmacology and Toxicology) won

the Understanding Planet Earth category and doctoral student Pei-Yu Wang (Anatomy and Structural

Biology) was named joint winner of the Advancing Human Health category of the awards.

Professor David Fergusson (Christchurch School of Medicine and Health Sciences) was made a Fellow of

the Royal Society of New Zealand (FRSNZ) and also an Honorary Fellow of the New Zealand Psychological

Society (Hon FNZPsS).

Also from the Christchurch School, Associate Professor Annette Beautrais won the American Association

of Suicidology’s Edwin Shneidman Award for 2006 for outstanding contributions in research, and

Professor Steve Brennan (Pathology) won the Outstanding Investigator Award from the International

Fibrinogen Research Society.

Dr Philip Sheard (Physiology) received a Fulbright New Zealand’s Senior Scholar Award to undertake

research into brain-nerve connectivity at Harvard University and senior research fellow Dr Kyp Kypri

(Injury Prevention Research Unit) won the prestigious international IVO Award for addiction research.

Professor Rick Sibson (Geology) was made a Fellow of the American Association for the Advancement of

Science for distinguished contributions in the study of fault rocks and mechanisms. Dr Chris Pemberton

(Christchurch School of Medicine and Health Sciences) and Dr Yiwen Zheng (Pharmacology and

Toxicology) each received four-year Sir Charles Hercus Health Research Fellowships.

Professor Derek Holton (Mathematics) was awarded a CMSA medal for lifetime contribution to

combinatorics in Australasia, while his colleague, Associate Professor Robert Aldred, was awarded a

Nihon University Medal for his joint work on graph factors. Professor Robin Olds (Pathology) was named

as the next Chief Executive of the New Zealand Health Research Council.

advancement

The Leading Thinkers Programme was the University’s major Advancement activity during the past

year. Donors and sponsors who wish to invest in the University through this programme are able to

attract matching capital funds from the Government through an agreement within the Partnerships for

Excellence framework.

In 2006 the total number of Leading Thinkers projects rose from 12 to 23 and capital invested in the

initiative rose from more than $20 million to over $42 million.

A gift of $900,000 by the Alexander McMillan Trust created the Alexander McMillan Chair in Childhood

Studies. The chair will allow Otago’s Children’s Issues Centre to be further developed as an authoritative

source of multidisciplinary research on the well-being and rights of children and young people, and a

significant influence on public policy. This gift was added to an earlier $500,000 from the McMillan

Trust. An international search is under way for the holder of the new chair.

The Child Health Research Foundation provided $1.25 million to enable the endowment in perpetuity of

the Cure Kids Chair in Child Health. Professor Stephen Robertson has moved into the new position.

The Stuart Residence Halls Council endowed the Stuart Chair in Scottish Studies with a gift of $1.5million.

The aim of the new chair is to pursue research and teaching into aspects of Scottish history, culture and

society, to illuminate its influence on the formation of New Zealand identity, and assess its contribution

to New Zealand’s economic, social and cultural development. The post is expected to be filled in 2007.

The Stuart Residence Halls Council also supported the Stuart Chair in Science Communication with

a further gift of $1.5 million. The chair, another first for the country, will provide leadership and

international research prominence in the communication and popularisation of science.

In June the University was able to purchase an ocean science research vessel to support the work of

researchers in seven departments across the University. The purchase and refit of the former fishing vessel,

Polaris II, was made possible by donations totalling $345,000 from the Mace Charitable Foundation Trust,

the J and L Callis Charitable Trust, the Eion and Jan Edgar Charitable Trust, and the Community Trust

of Otago.


22

$1.5million from AgResearch Limited will support the new AgResearch Chair in Reproduction

and Genomics. The aim of the chair is to create a leading international centre at the cutting edge of

reproduction and genomics to promote health, and facilitate disease prevention in animals and humans.

It will strengthen the partnership between the University and AgResearch which is New Zealand’s major

non-university research institution.

The Karitane Senior Research Fellowship in Early Childhood Obesity will be established with the support

of the KPS Society Limited and its gift of $600,000. The fellow will support the work and strengthen the

capability of the Edgar National Centre for Diabetes Research.

The Centre for Molecular Research in Infectious Diseases received a gift of $166,000 from a US-based

donor, Dr John Thrash. This gift will be used to purchase laboratory equipment for the centre in support

of Professor Kurt Krause.

The Sisters of Mercy and Mercy Hospital Dunedin agreed to fund the McAuley Chair in International

Health at the Dunedin School of Medicine. This gift of $1.5million, named for the founder of the Sisters of

Mercy, Catherine McAuley, will establish a research centre intended to improve health and to undertake

research into health in developing countries in the Pacific and beyond. The chair fits with a distinctive

element in the University’s formal Strategic Direction – that of contributing to international progress.

A gift of $1 million will fund the University of Otago Legal Issues Centre. The work of the centre will

promote a legal system that best serves the interests of the general public, rather than the interests of the

law and lawyers. The donors for this centre, the GAMA Foundation, are major supporters of another

of Otago’s Leading Thinkers projects, the GAMA Research Fellowship in Bipolar Disorder at the

Christchurch School of Medicine and Health Sciences.

Finally for 2006 a gift of $1 million from Mr Trevor Scott will fund the T D Scott Chair in Urology.

The new chair, sited at the Dunedin School of Medicine, will add to clinical research in this field, at the

same time establishing new links and opportunities both within and outside the Otago District Health

Board.

commercialisation

Otago Innovation Limited, the University’s commercialisation company, consolidated its position in a

number of significant projects during the year.

Using platform technology developed in the University’s Department of Chemistry, Antipodean

Pharmaceuticals Inc continued to make exciting progress with the new drug, MitoQ. As well as

commencing phase II clinical trials in New Zealand relating to Parkinson’s disease, the scope has now

broadened to include potential applications in dermatological and cardiac fields. The start of phase II

trials for hepatitis C was also announced.

Photonic Innovations Limited is targeting late 2007 for the release of its first product. This company was

formed in partnership with Endeavour Capital to commercialise a gas-detection technology developed

by Associate Professor Andrew Wilson (Physics). Iso-trace New Zealand Limited gained a number of

significant contracts from Biosecurity New Zealand and returned its maiden profit.

Immune Solutions Limited continued to attract considerable interest in its oral vaccine delivery platform,

while software for use in nutrition surveys, developed by the LINZ unit at the School of Physical Education

and the Department of Human Nutrition, was licensed to CSIRO in Australia.

An animal health product for treatment of vitamin B12 deficiency in sheep, developed in the School of

Pharmacy, was licensed to Bomac Limited and is currently in use by farmers in New Zealand.

other research developments

2006 saw the development of 10 extensive proposals to the Royal Society for Centres of Research Excellence.

These proposals capitalised on major areas of strength at the University of Otago, and forged strong

collaborations with other universities and Crown Research Institutes. The outcome will be announced in

mid-2007. The proposals were as follows:

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Centre for Infectious Disease

Centre for Urban Health and Development

Centre for Translational Research in Chronic Diseases: Obesity

Families Young and Old

The Jack Dodd and Dan Walls Centre for Photonics and Ultra-Cold Atoms

Mental Health and Addiction Research Centre (MHARC)

National Research Centre for Heart Health

New Zealand Cancer Genome Centre

New Zealand Energy Research Centre

The Sir Peter Blake Centre for Marine Research.

A Centre for the Study of Agriculture, Food and Environment was launched in July, pulling together the

resources and expertise from the Divisions of Sciences and Humanities, as well as external agribusiness

interests.

postgraduate teaching

A significant contribution to Otago’s research strength is made by its postgraduate research students and

2006 was marked by a significant increase in the number of students enrolled in PhD study. At the end

of the year, 935 students were enrolled, an increase of 106 (12.8%) compared with 2005 (829). There was

also strong growth (63.1%) in the number of international PhD students who comprised 18.5% of all PhD

students at the end of 2006.

The number of PhD degrees completed in 2006 was a record 131 (2005: 114). Among these was Dr Patries

Herst who received the University’s first doctorate in Medical Radiation Therapy.

Various workshops were held for PhD students, supervisors and conveners, including two well-attended

two-day workshops on Providing Quality Postgraduate Supervision. In the annual graduate opinion survey

89.6% of masters’ and doctoral graduates reported overall satisfaction with the quality of their thesis

supervision.

The University continued its distinguished record of Rhodes Scholarships with the selection of Holly

Walker (English and Political Studies) to undertake a Master of Philosophy degree in Development

Studies at Oxford University. She is Otago’s 49th Rhodes recipient. Irene Ballagh (Neuroscience) was

selected as one of 27 winners worldwide of the new International Fulbright Science and Technology

Awards to undertake PhD studies in the United States.

Six Otago PhD students received Top Achiever Doctoral Scholarships and a further three Otago graduates

were awarded Commonwealth Scholarships to undertake postgraduate study at British universities.

Tonga-based health-informatics student Nauna Paongo was awarded a first-of-its-kind World Health

Organisation (WHO) Fellowship.

In October the Otago University Students’ Association organised its second annual postgraduate

symposium and in November announced Associate Professor Anne Bray (Health Sciences) as the winner

of the OUSA’s 2006 Best Postgraduate Supervisor Award.


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cost of output

research and postgraduate teaching

Commerce HealthSciences Humanities

This Year Budget Last Year This Year Budget Last Year This Year Budget Last Year

$000 $000 $000 $000 $000 $000 $000 $000 $000

Postgraduate

Thesis Supervision 3,432 5,500 3,094 13,862 11,023 13,743 6,135 6,005 4,092

Teaching Related Research 2,929 595 2,777 6,620 5,384 5,405 6,253 5,924 3,756

Project-based Research

- University Funded 2,660 3,203 2,640 37,985 45,676 33,114 4,255 4,639 3,172

- Externally Funded 961 1,251 988 57,409 56,984 56,666 8,242 7,315 8,110

TotalCostofOutput 9,982 10,549 9,499 115,876 119,067108,928 24,885 23,883 19,130

Sciences ServiceDivisions Total


$000 $000 $000 $000 $000 $000 $000 $000 $000

Postgraduate

Thesis Supervision 10,266 9,534 6,909 8,010 8,338 6,394 41,705 40,400 34,232

Teaching Related Research 5,292 4,942 7,918 0 0 0 21,094 16,845 19,856

Project-based Research

- University Funded 10,821 10,894 7,825 31 30 24 55,752 64,442 46,775

- Externally Funded 12,167 12,434 12,405 0 0 0 78,779 77,984 78,169

TotalCostofOutput 38,546 37,804 35,057 8,041 8,368 6,418 197,330 199,671 179,032

2�


26

teaching and learning

The University of Otago is committed to providing programmes which meet changing student, national

and international needs, to maintaining and enhancing the quality of teaching and programme delivery,

and to the achievement of excellent learning outcomes.

Otago’s success in achieving these aims was recognised by its inclusion in a list of the world’s top 100

universities compiled by The Times Higher Education Supplement. Otago was ranked 79th-equal in

rankings that were led by Harvard University, followed by the Universities of Cambridge and Oxford.

The University was further commended by the New Zealand Universities’ Academic Audit team for the

collegiality and strength of communication between the University community and senior management, as

well as progress made in responding to Treaty of Waitangi commitments. The team, which undertook an

audit of the University in 2006, also commented positively on its strong reputation for high-quality education,

the processes in place to assure this quality, its student facilities, and the lively and distinctive campus life.

academic developments

In 2006 16 new qualifications were introduced, bringing the total number of degrees, diplomas and

certificates on offer to 172. The new qualifications were Masters’ of Aviation Medicine, Dental Technology,

and Social and Community Work; Bachelors’ of Mäori Traditional Arts, Social and Community Work,

and Tourism with Honours; Postgraduate Diplomas in Aeromedical Retrieval and Transport, Dental

Technology, Occupational Medicine, and Tourism; Postgraduate Certificates in Aeromedical Retrieval

and Transport, Medical Technology, and Occupational Medicine; Diplomas in Language, and Language

and Culture; and Certificate of University Preparation. The Master of Public History programme was

discontinued, as was the Bachelor of Tourism which, from 2007, will be incorporated into a revised

Bachelor of Commerce.

A number of new endorsements and majors were also introduced, as well as new qualifications approved

for the 2007 academic year. Of particular note, the School of Business introduced a core curriculum of

seven papers that will apply to all students enrolling in a Bachelor of Commerce for the first time in 2007.

A revised Health Sciences First Year programme was also approved for introduction in 2007.

The proposed merger with the Dunedin College of Education was approved in August. The College will

combine with the University’s Faculty of Education to form the University of Otago College of Education,

effective from January 1, 2007, and led by Professor Helen May.

A change to the University’s academic points system was approved. From the start of the 2007 academic

year a typical one-year undergraduate course, previously comprising 40 points, will equate to 120 points.

A typical three-year degree will thus comprise 360 points. This system is consistent with those that have

been progressively adopted by other New Zealand universities.

There was a marked increase in the number of papers offered in Summer School in 2006: 65, up from 49

in 2005. EFTS growth continued, rising by 5.3% to 319 EFTS. New papers tended to be in niche interest

areas. Eleven papers were taught by visiting academics especially contracted for Summer School from

overseas and 14.7% of the Summer School student body were international students.

Otago has provided a Distance Learning programme since 1985, with more than 120 papers now on offer.

A review of Distance Learning was undertaken during 2006 and this report is still under consideration.

The School of Business gained accreditation from the North American-based Association to Advance Collegiate

Schools of Business (AACSB International) which offers the School a formal international benchmark. The

School of Business was again named as the leading provider of MBA programmes in New Zealand by the

Economist Intelligence Unit – the business arm of the Economist Group that publishes The Economist

newspaper and which listed the School of Business’s Otago MBA in its 2006 Top 100 MBA programmes.

The Medical and Dental Schools welcomed the Government’s announcement of significant additional

funding which will come into effect from January 2007. This will be used to support undergraduate

curriculum development, the provision of approprate infrastructure and to help the ongoing recruitment

of world-class staff. The Medical School also celebrated its 10,000th graduate in December.

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enrolment

After five consecutive years of growth, enrolments declined in 2006. The final roll of 17,449 EFTS

represented a 1.6% fall from the 17,739 EFTS enrolled in 2005, making the roll in EFTS terms almost

identical to that recorded in 2004. This total of 17,449 EFTS was generated by 19,853 individual students

(2005: 20,057).

As was the case in 2005, domestic first-year growth was achieved within the core sub-group of school-

leavers going directly to university study (this group comprises almost 70% of Otago’s domestic first-year

intake), but this was not quite sufficient to offset a fall in the number of commencing mature students.

The net result was a 1.2% drop in domestic first-years.

More than two thirds of commencing students came to the University from outside its home catchment.

Students from the North Island comprised 43.2% of the total first-year intake and 47.2% of the domestic

first-year intake.

Two years of reduced first-year intakes has resulted in a 1.3% drop in domestic undergraduate enrolments,

but there was a pleasing 4.7% increase in domestic postgraduate enrolments.

The number of both Mäori and Pacific peoples students continued to grow in absolute terms and their

representation in percentage terms increased slightly in 2006 to 6.4% and 2.6% of total enrolments respectively.

For the second consecutive year, first-year student recruitment from China was down. Every New Zealand

university was affected by this worldwide trend, with Otago experiencing a 10.7% decline in Chinese

enrolments. Otago also experienced a 9.9% decline in recruitment from its second-largest source of overseas

students, the United States. In contrast, international recruitment from countries other than China and

the United States increased by 5.7%. The net effect was a 2.2% international decline in headcount terms.

While they are counted as domestic students for statistical and funding purposes, the University attracts

a small stream of students from Australia. In 2006 the University enrolled 55 first-year students from

Australia (2005: 37), some 49% of whom were Australian citizens, and 45% New Zealand citizens

returning from Australia. The total number of enrolments of students from Australian home areas was

231 (2005: 234).

undergraduate scholarships

The University announced the introduction of a new undergraduate scholarship, the Leaders of

Tomorrow Scholarship. Starting in 2007, 50 scholarships, each worth $5,000, will be offered to first-

year students with proven leadership ability and all-round interests. This is seen as a complement to the

range of undergraduate scholarships already offered by the University. Among these is the University’s

Dux Scholarships offered for the first time in 2006. An excellent response was received, with 90 of New

Zealand’s brightest young school-leavers taking up a Dux Scholarship.

internationalisation

Internationalisation continues to play a significant role in the University’s outlook, with an ongoing

commitment to incorporating student exchanges within undergraduate study as an integral part of the

Otago experience. In 2006 the number of Otago students participating in such exchanges was 138. A

further 204 international students studied here on exchange.

2006 was a year of consolidation after marked growth in international agreement partners over the

previous eight years. However, the development of links with Latin America continued with the signing

of student exchange agreements with Instituto de Empresa Business School and Universidad Autónoma

de Madrid in Spain, and Pontifícia Universidade Católica do Rio de Janeiro in Brazil. This brought the

number of exchange partners to 89 from 32 different countries.

As reported above, the University experienced a decline in overall and commencing international EFTS

in 2006. But while there were fewer commencing students from China, enrolments from the Gulf States

continue to grow, largely as a result of increasing cohorts of government-sponsored students from Saudi

Arabia, Oman, Bahrain and the United Arab Emirates. Otago’s first Saudi Arabian medical graduates

received their degrees at the end of 2006, as did the University’s first Omani graduate.


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A particular feature of 2006 was a marked increase in commencing international PhD enrolments. This

was a result of a change in government policy, enabling international PhD students to be treated as

domestic students for tuition-fee payment.

teaching and learning developments

Quality teaching is vital to the successful delivery of all programmes. The University recognises this with

its annual Teaching Excellence Awards which celebrate outstanding contributions in fostering learning.

In 2006 awards were presented to Professor Tänia Ka‘ai (Te Tumu, the School of Mäori, Pacific and

Indigenous Studies), Dr Lesley Procter (Sociology) and Associate Professor Lyall Hanton (Chemistry).

These awards are the counterpart to the Distinguished Research Medal and reinforce the University’s

ongoing commitment to teaching and student learning. Professor Ka‘ai and Dr Procter both also received

awards for sustained excellence in the 2006 national Tertiary Teaching Awards. Business law lecturer

David Sim was the overall winner of the Otago University Students’ Association Teaching Awards.

Otago’s high standard of teaching was further reinforced in the annual graduates’ and students’ surveys,

with 95% of respondents recording overall satisfaction.

Otago’s staff continued to be recognised widely outside of the University community. These included

Professor Terry Crooks (Education) who was made an Honorary Fellow of the New Zealand Education

Institute and received a Secondary Principals’ Association of New Zealand Leadership in Education Award

for his work in developing standards-based assessment. Associate Professor Gary Wilson (Geology) won

a 2006 Sir Peter Blake Emerging Leader Award, and Professor Carolyn Burns (Zoology) and Professor

Harlene Hayne (Psychology) were appointed to a newly-established National Science Panel consisting of

top science leaders in New Zealand.

The Higher Education Development Centre (HEDC) again played an important role in the improvement

of teaching performance, running a variety of professional development workshops attended by some

1,200 participants. There were also workshops for new heads of academic departments, and activities

continued within the Women in Leadership and Mentoring Programme for Women.

Support for students wishing to improve their study and learning skills was ongoing. The Student Learning

Centre ran 216 workshops attended by about 2,500 participants and provided one-to-one consultations

to 525 students. Several workshops were also provided in the Christchurch and Wellington Schools of

Medicine and Health Sciences, and in departments and residential colleges on the Dunedin campus.

Other important learning support services were provided for specific groups through Te Huka Matauraka (the

University’s Mäori Centre), the Pacific Islands Centre and the Disabilities Information & Support Office.

HEDC worked on nine major projects supported by the University’s Committee for the Advancement of

Learning and Teaching and other bodies, as well as two large TEC e-Learning Collaborative Development

Fund (eCDF) grants, extending one of them (Information Literacy, a collaboration with the University

Library, the Dunedin College of Education and the Otago Polytechnic) for an additional year. The other,

Te Whanake Online, New Zealand’s first interactive Mäori language website, was completed.

External research funding was received for three significant teaching-related research projects: from the

Ministry of Education for research into enquiry-based teaching and learning in undergraduate education;

from the Ministry of Education for research into staff development frameworks for e-Learning; and from

the eCDF for information literacy.

A Spotlight on Teaching Colloquium was held to showcase best practice and promote research into

teaching and learning. The University also hosted the 31st International Improving University Teaching

Conference, attended by more than 100 specialists in higher-education learning and teaching from

around the world.

The University Library is an enormously important teaching and learning facility. During 2006

information resources continued to be developed, with the Library’s on-site collections comprising

2,871,114 items (2005: 2,838,816), as well as 7,234 print subscriptions and 70,536 electronic serials. The

Library provides instructional programmes to students to develop the enquiry skills needed to underpin

lifelong learning, and staff have developed a series of online interactive modules designed to help learners

locate, evaluate, manage and use information from a range of sources.

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cost of output

teaching, learning and assessment



$000 $000 $000 $000 $000 $000 $000 $000 $000

Campus-based

Teaching & Learning 18,915 18,779 16,999 63,096 53,172 49,550 23,740 22,902 23,128

Distance

Teaching & Learning 0 0 8 0 0 0 385 475 435




$000 $000 $000 $000 $000 $000 $000 $000 $000

Campus-based

Teaching & Learning 34,951 32,038 29,942 2,620 2,366 2,718 143,322 129,257 122,337

Distance

Teaching & Learning 775 849 815 0 0 0 1,160 1,324 1,258



�0

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community service

In accordance with the provisions of its Charter and Strategic Direction, the University is committed to

providing a general service role within the community.

This role includes:

Sharing the academic and professional expertise of staff through activities ranging from service on

government advisory boards and committees, to presentations to school and community groups, and

through the media in areas of academic expertise.

Providing adult and continuing education courses, hosting conferences and open lectures.

Making available to the public other resources such as the University Libraries, Hocken Collections,

the National Poisons Centre and the New Zealand Marine Studies Centre.

Contributing to the arts through fellowships and performances.

Maintaining ongoing contact with Otago alumni.

While it is difficult to quantify fully this important aspect of University activity, an annual survey of

randomly selected academic staff does give a picture of the extent to which staff are involved. Of those

surveyed in 2006, 93.2% reported involvement in community service activities (2005: 90.2%). Of these,

61.2% reported services to public-sector departments, statutory authorities, agencies, boards, committees,

inquiries and non-governmental organisations. In addition, 28.2% reported serving on government

advisory boards and committees.

The value of community service by University academics in 2006 was estimated at $23.8 million (2005:

$25.6 million).

The University again hosted a large number of conferences and other events. One of the first major events

of the year was the annual Hands-On Science school attended by more than 250 secondary school students

from around New Zealand. In June the biennial University of Otago Science Expo, held in conjunction

with the International Science Festival, attracted 5,300 visitors on to the campus over a two-day period.

The expo featured 35 events and exhibits from the Divisions of Sciences and Health Sciences.

Highlights on the conference calendar included the New Zealand Bioethics Conference attended by 160

experts from around Asia, Pacific, Europe and North America. It was held in February in conjunction

with a one-day UNESCO Ethics of Knowledge Production Conference. The first conference of its type

held in the Southern Hemisphere, the Otago Workshop in International Trade attracted economists from

around the world, and more than 200 delegates attended two concurrent international conferences on the

future of New Zealand’s “clean green” tourism brand.

The 41st Foreign Policy School was held in June. The subject of the conference was Sport and Foreign

Policy in a Globalising World and it again attracted a top quality line-up of international speakers.

In addition, the University hosted more than 150 open lectures and public seminars throughout the

year. The inaugural winter lecture series was launched in May and held at the Auckland Centre. This

comprised 11 lectures canvassing a diverse range of subjects, from “designer babies” and economic

inequality, to the bio-geography of the New Zealand Galaxid fish. Other public lectures of note included

those by Nobel Prize-winning Australian immunologist Professor Peter Doherty, William Evans Visiting

Fellow Professor Lawrence Wenner and former White House communications advisor Professor Bruce

Newman.

The University continues to be active in the Tertiary Education Commission’s ACE (Adult and Community

Education) Network. Under the agreement with the University of the Third Age Charitable Trust Dunedin

(U3A), nine short courses were jointly offered in 2006. The University collaborated externally also to

offer two writing schools, one with Kaikorai College and the Dunedin College of Education, and the

second just with the latter. A further 53 short courses and workshops were held.

In other community service initiatives, six students from the School of Dentistry spent three weeks

working in the Cook Islands to help improve the knowledge and practice of dental care as well as dental

services to the local people.


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A Pacific Peoples’ Reference Group was established in March to advise the University how to best achieve

its goals and objectives for Pacific peoples and how these can be further developed in ways that align with

Pacific community aspirations.

In June Te Tumu, the University’s School of Mäori, Pacific and Indigenous Studies, launched what is

believed to be the world’s first open access digital repository for indigenous knowledge. Although still

in its infancy, the repository will make Te Tumu’s collection of papers, theses and multi-media files

accessible to the world.

The National Poisons Centre, based at the University of Otago, launched a new interactive poison

prevention and education website in October. The site includes information on poisoning prevention

and first aid, with sections for children, parents and caregivers, as well as general information about the

centre, reports and statistics.

In November a new partnership between the University and Volunteer Service Abroad was launched. The

UniVol scheme, which is the first of its kind in New Zealand, will enable development studies students to

gain practical experience working in some of the world’s poorest countries.

library services

One of the more visible means by which the University serves the community is through the accessibility

of its research and special collections.

HockenCollections

The Collections, held in trust for the people of New Zealand, continued to be used by a wide range of

community groups. These included schools, students of other tertiary institutions, visiting academics,

local historians, Mäori, genealogists, government departments, contract researchers, publishers, film

production companies and broadcasters. Staff responded to 1,429 written enquiries (2005: 1,188) and to

959 telephone enquiries (2005: 912). Reference assistance was provided to 4,810 public visitors using the

text collections (2005: 5061).

Two exhibitions were held at the Auckland Centre and eight exhibitions were mounted in the Hocken’s

own gallery; 267 items (including pictures, archives and publications) were on loan for exhibition at

other institutions. The 2006 Hocken Lecture on 11 October was given by poet and novelist C K Stead. The

archives access project, funded by Lottery Environment and Heritage, continued and resulted in a 20%

increase in archives usage.

During the year, Hocken Collection Librarian Stuart Strachan was appointed a member of New Zealand’s

inaugural Archives Council.

CentralLibrary,SpecialCollections

More than 3,100 people visited the Special Collections, including 336 readers (scholars, students, the

general public) who used 430 titles. Four successful exhibitions were mounted, of which two, West

meets East: Images of China and Japan (February – May) and In the Flesh: The Monro Medical Rare Book

Collection (September – December), attracted particular note from the local, national and international

community.

The Printer in Residence programme for 2006 was completed in August – September. The project was a

reprinting of Lewis Carroll’s The Hunting of the Snark, with illustrations by local artist David Elliot. It

was a collaborative venture, with the Dunedin Public Library, Wickliffe Press and local artists involved

in production. The limited edition of 101 copies sold out.

Digitisation projects continued with online Special Collections exhibitions and covers from the Pulp

Fiction Collection (801 titles) completed.

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new zealand marine studies centre

The New Zealand Marine Studies Centre, incorporating the Westpac Aquarium, contributes

significantly to the University’s community service goals. It is open daily, offering marine education

programmes throughout the year for schools, tertiary institutions and interest groups. Its mission is

to foster understanding, appreciation and responsible management of New Zealand’s unique marine

environment.

In 2006 there were 25,886 visitors to the facility (2005: 23,011) including:

• 16,209 casual visitors to the aquarium

• 5,817 school students (370 classes) attending curriculum-linked educational programmes

• 3,860 people participating in group marine experiences, tours and workshops (359 classes/tours).

A further 5,434 people participated in programmes held in other locations in Dunedin and Nelson/

Marlborough.

2006 was the first year of a new Gifted and Talented programme for Year-10 students from Dunedin

schools, rural schools across the South Island and a primary cluster group (Years 7 and 8). It was funded

through the Ministry of Education Talent Development Initiative. A renewed three-year contract was

negotiated with the Ministry of Education to deliver Learning Experiences Outside the Classroom

for Otago/Southland/South Canterbury schools and to run an outreach programme in the Nelson,

Marlborough and Tasman districts.

the arts

The University’s contribution to the cultural life of New Zealand is underpinned by its four major arts

fellowships. In 2006 they were held by Catherine Chidgey and Dianne Ruth Pettis (Robert Burns Fellow,

literature), Sarah Munro (Frances Hodgkins Fellow, fine arts), Rachel Clement (Mozart Fellow, music)

and Georgina White (Caroline Plummer Fellow, dance).

The University’s production of Bizet’s opera Carmen was a particular highlight of Dunedin’s cultural

calendar in 2006. Staged at the Regent Theatre in August, the 70-strong cast included a number of

distinguished alumni as well as current students.

Continuing a long-established practice, the University’s Departments of Theatre Studies and Music

staged a total of 146 public performances throughout the year (2005:123). The regular series of lunchtime

concerts and dramatic performances makes a strong contribution to the cultural life of the city of

Dunedin, as well as providing valuable experience for students.

alumni

Alumni are important members of the University community. News about graduate successes, as well as

University developments and events of interest, was communicated via the University of Otago Magazine

which was published three times during the year.

Seventeen alumni social functions were held throughout New Zealand and the rest of the world

– in Whangarei, Auckland, Hamilton, Tauranga, Napier, Wellington, Nelson, Christchurch, Dunedin,

Invercargill, Melbourne, Sydney, Kuala Lumpur, Kuching, Suva and London (2005: 15). A number of

residential colleges also held alumni events throughout the year, with the assistance of the Alumni and

Development Office.

The Health Sciences Division celebrated its alumni with a number of medical class reunions. The Alumni

and Development Office assisted with a number of other alumni-organised reunions, including the

School of Mines (classes 1950–1960).


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cost of output

community service



$000 $000 $000 $000 $000 $000 $000 $000 $000




$000 $000 $000 $000 $000 $000 $000 $000 $000

TotalCostofOutput 6,415 5,962 7,262 0 0 0 23,779 21,476 25,635

��


�6

statement of service performancefor the year ending �� december 2006

contribution to new zealand and the tertiary sector

objective �: to enhance the university’s standing as a premier research institution

performance indicators

i. Increasing research funding from outside sources by at least 5% per annum.

Research funds from outside sources increased by 0.6%, to $67.2 million (2005: $66.8).

ii. Increasing the number of University-funded postgraduate scholarships and awards offered and taken

up by 10 per annum.

114 PhD students took up their scholarships and 57 masters’ students took up their awards (2005: 127

in total).

iii. Increasing the number of publications of scholarly books, monographs and articles in refereed

journals by at least 5% per annum.

Unique research outputs listed in the University’s 2006 Research Outputs Report increased by 14.1% to

4,279 (2005: 3,749).

objective 2: to recognise, support and achieve excellence in teaching


i. At least 90% of departments and programmes sampled in the annual Student Opinion and Graduate

Opinion Survey receive a positive mean rating on the Good Teaching, Appropriate Assessment and

Overall Satisfaction scales.

Of the 35 programmes and departments surveyed in 2006 (for which statistically reliable response rates

were obtained), all received positive mean scores on these scales (2005: 32 programmes and departments,

97.0% with positive mean scores on the Good Teaching and Overall Satisfaction scales and all with

positive mean scores on the Appropriate Assessment scale).

ii. At least maintaining the total funding provided through innovation in teaching grants, research into

university teaching grants, and internationalisation of the curriculum grants.

$125,000 was made available for innovation in teaching and e-learning enhancement grants (2005:

$125,000), $50,000 for internationalisation of the curriculum grants (2005: $50,000) and $75,000 for

research into university teaching grants in 2006 (2005: $75,000).

iii. At least 90% of respondents to the Graduate Opinion Survey reporting overall satisfaction with the

quality of doctoral and masters’ thesis supervision.

89.6% of masters and doctoral students reported overall satisfaction with the quality of thesis supervision

(2005: 81.6%).

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objective �: to develop in students the skills, attributes and knowledge to enhance their capacity to make a positive contribution to society and their employment prospects


i. At least 90% of respondents in the Graduate Opinion Survey reporting some, moderate or extensive

development of the following skills and attributes through their studies: oral communication skills;

written communication skills; the skills to plan their own work; the ability to solve problems; self-

confidence; flexibility and adaptability.

The percentage of respondents to the 2006 survey reporting some, moderate or extensive development

of the above attributes was as follows: oral communication skills, 90.3% (2005: 88.6%); written

communication skills, 89.1% (2005: 94.3%); the skills to plan their own work, 90.4% (2005: 93.4%); the

ability to solve problems, 92.9% (2005: 94.6%); self-confidence, 87.8% (2005: 90.7%); flexibility and

adaptability, 89.7% (2005: 91.0%).

objective �: to support internationalisation and student interaction in an international environment


i. A diversified international student population constituting no more than 12% of total University

EFTS, with no more than 25% of the international cohort from one country.

International EFTS for 2006 were 10.7% of total University EFTS. Students from the People’s Republic

of China comprised 31.1% of total international EFTS. All other countries were below 25.0% of total

international EFTS (2005: 11.9% of total University EFTS, with 32.2% from China).

ii. Increasing the number of domestic students participating in international exchanges as follows: to

180 places in 2006, 200 places in 2007 and 220 in 2008.

Having increased steadily from 2002 to 2005, the number of domestic Otago students participating in

international exchanges decreased by 2% to 170 places (2005: 173).

iii. Achieving or exceeding the following international EFTS enrolment targets: 2,011 EFTS in 2006,

1,880 EFTS in 2007 and 1,810 EFTS in 2008.

In keeping with a trend apparent across the New Zealand university sector, international student numbers

decreased to 1,875 in 2006 (2005: 2,104).


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objective �: to share the university’s expertise and resources with the community and foster the creation and presentation of works of art, literature and music


i. At least 80% of University academic staff involved in community service activities.

93.2% of respondents to the 2006 Community Service Survey undertook involvement in community

service activities (2005: 90.2%).

ii. Holding at least 100 open lectures, public seminars, and adult and community education courses per

annum.

The University held 210 open lectures, public seminars, and adult and community education courses in

2006 (2005: 172).

iii. Providing at least 100 performing arts activities open to the public per annum.

The University’s Departments of Theatre Studies and Music staged 146 public performing arts activities

(2005: 123).

iv. Awarding the following annual fellowships: the Robert Burns Fellowship (for literature); the Frances

Hodgkins Fellowship (for visual arts); the Mozart Fellowship (for musical composition); the Caroline

Plummer Fellowship in Dance.

All fellowships were awarded in 2006, the recipients being Catherine Chidgey and Dianne Pettis (Robert

Burns), Sarah Munro (Frances Hodgkins), Rachel Clement (Mozart) and Georgina White (Caroline

Plummer).

objective 6: to preserve and enhance the unique qualities of the otago campus lifestyle and otago learning experience


i. At least 90% of respondents to the annual Student Opinion Survey providing a positive assessment of

the following: the general campus environment; living accommodation provided by the University;

the quality of sporting and recreational facilities; University lecture rooms, tutorial rooms and

laboratories; Accommodation Services; Student Health and Counselling; the Careers Advisory

Service; the Student Learning Centre; the International Office; the Disabilities Office; personal

safety on campus; Recreation Services and the Unipol gym.

The following percentages were recorded for respondents to the 2006 Student Opinion Survey: general

campus environment, 97.9% positive (2005: 96.8%); living accommodation provided by the University,

90.5% positive (2005: 88.3%); the quality of sport and recreational facilities, 90.0% positive (2005: 90.0%),

University lecture rooms, tutorial rooms and laboratories, 93.8% positive (2005: 94.0%); Accommodation

Services, 93.7% positive (2005: 89.9%); Student Health and Counselling, 82.3% positive (2005: 91.8%);

the Careers Advisory Service, 91.8% positive (2005: 89.5%); the Student Learning Centre, 97.2% positive

(2005: 95.2%); the International Office, 84.8% positive (2005: 83.0%); the Disabilities Office, 95.6%

positive (2005: 97.0%); personal safety on campus, 95.9% positive (2005: 95.2%); Recreation Services,

94.9% positive (2005: 92.4%) and the Unipol gym, 88.9% positive (2005: 88.9%).

ii. At least 90% of respondents to the annual Student Opinion Survey providing a positive assessment

of the helpfulness of: Student Information Centre staff; library staff; computing resource room

supervisors; administrative staff in academic departments; administrative staff in academic

divisions.

The following percentages were recorded for respondents to the 2006 Student Opinion Survey: helpfulness

of Student Information Centre staff, 96.9% positive (2005: 95.4%); library staff, 97.5% positive (2005:

95.9%); computing resource room supervisors, 95.4% positive (2005: 94.8%); administrative staff in

academic departments, 95.6% positive (2005: 93.6%); administrative staff in academic divisions, 96.4%

positive (2005: 94.4%).

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approach to fulfilling treaty of waitangi obligations

objective �: to develop and maintain policies and practices which acknowledge partnership with iwi


i. Developing a new Memorandum of Understanding with Ngäi Tahu and working towards appropriate

agreements with other iwi.

A final revised Memorandum of Understanding was agreed in 2006 and is scheduled to be signed by Ngäi

Tahu and the University of Otago in early 2007.

A Memorandum of Agreement was signed by the University of Otago and Te Rünanga o Ngäti Whätua

in July 2006.

A Memorandum of Agreement was endorsed by the University of Otago and Te Arawa and is scheduled

to be signed in June 2007.

Dialogue continued with Ngäti Toa in Wellington around the potential of developing a memorandum of

agreement.

ii. Taking account of Treaty and partnership issues into the development of new academic programmes

and into reviews of existing academic programmes.

The Mäori Affairs Advisor and Treaty of Waitangi Committee continued to provide direction and input

in reviews of existing programmes and in the development of new programmes.

iii. Seeking advice from Ngäi Tahu, and other iwi as appropriate, on the exercising of kawa and tikanga

within their takiwä.

The Mäori Affairs Advisor facilitated, co-ordinated advice, and led where appropriate the exercising of

kawa and tikanga for functions, ceremonies and events during 2006. Such activity has been under the

korowai (umbrella) of Ngäi Tahu, Rünanga and/or Treaty of Waitangi Committee policy.

iv. Developing a Mäori Strategic Framework for the University.

The University continued to develop the Mäori Strategic Framework in 2006.

objective �: to strengthen links with nga iwi maori in research, and to promote and support research in maori language, culture, education, science, health and history


i. At least maintaining the number of research projects being undertaken in association with Mäori.

The University of Otago continued to support and promote consultation through the Ngäi Tahu Research

Consultation Committee which considered 375 projects during 2006 (2005: 389).

ii. To offer at least eight scholarships per annum for Mäori students completing undergraduate study

and progression to postgraduate study.

Eight scholarships were offered in 2006 (2005: eight).

iii. To increase targeted funding support to assist Mäori doctoral students to attend conferences.

Targeted funding support of $15,295 was provided to assist Mäori doctoral students in attending

conferences in 2006 (2005: $11,440).


�0

objective �: to increase maori student recruitment, retention and achievement at all levels, and to provide appropriate academic, cultural and social support


i. Increasing enrolment of Mäori students as follows: 1,350 in 2006, 1,425 in 2007 and 1,500 in 2008.

The number of Mäori students increased to 1,368 in 2006 (2005: 1,329).

ii. Increasing the percentage of Mäori students passing at least two thirds of their academic credits in

their first year of study.

65.6% of Mäori students passed at least two thirds of their academic credits in their first year of study in

2006 (2005: 69.3%).

iii. Increasing the number of Mäori students completing qualifications.

254 Mäori students (18.6% of total Mäori enrolments) completed qualifications during 2006 (2005: 244

and 18.4%).

iv. At least 90% of Mäori respondents to the annual Student Opinion Survey providing a positive

assessment of the support provided by the Mäori Centre.

92.7% of Mäori respondents to the 2006 Survey provided a positive assessment of the support provided by

the Mäori Centre (2005: 96.4%).

v. To offer, from 2006, at least 20 scholarships per annum for Mäori students commencing undergraduate

study.

23 scholarships were offered to Mäori students commencing undergraduate study in 2006.

objective �0: to support the recruitment and development of maori staff


i. The use of te reo Mäori to advertise positions where appropriate.

Two positions advertised in Mäori in 2006 (2005: three).

ii. Providing support as appropriate for Mäori staff undertaking tertiary study.

Mäori staff were assisted in undertaking tertiary study under the Univerity’s research development

programme.

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approach to meeting the needs of pacific peoples

objective ��: to increase pacific student recruitment, retention and achievement at all levels, and to provide appropriate academic, cultural and social support


i. Increasing the number of Pacific peoples students enrolled as follows: 590 in 2006, 620 in 2007 and

650 in 2008.

The number of Pacific peoples students increased to 545 in 2006 (2005: 537).

ii. Increasing the percentage of first-year Pacific peoples students passing at least two thirds of their

academic credits in their first year of study.

54.9% of Pacific peoples students passed at least two thirds of their academic credits in their first year of

study in 2006 (2005: 53.3%).

iii. Increasing the number of Pacific peoples students completing qualifications.

93 Pacific peoples students (17.1% of total Pacific peoples enrolments) completed qualifications during

2006 (2005: 93 and 17.3%).

iv. At least 90% of Pacific Islands respondents to the annual Student Opinion Survey providing a positive

assessment of the support provided by the Pacific Islands Centre.

80.9% of Pacific Islands respondents to the 2006 Student Opinion Survey provided a positive assessment

of the support provided by the Pacific Islands Centre (2005: 80.5%).

v. To offer, from 2006, at least five scholarships per annum for Pacific peoples students commencing

undergraduate study and four per annum for those progressing to postgraduate study.

Seven scholarships were offered to Pacific peoples students commencing undergraduate study and four

were offered to those progressing to postgraduate study.

objective �2: to promote and support research, teaching and learning in areas relevant to the needs and interests of pacific peoples


i. Introducing a series of adult and community education courses on Pacific cultures.

The annual “Pacific Voices” symposium was extended to two days due to demand and a short course on

Pacific Health was approved and developed for inclusion in the 11th Public Health Summer School in

Wellington. A course in Pacific dance was launched in the Dunedin Summer School.

ii. Increasing targeted funding support to assist Pacific peoples doctoral students to attend conferences.

Targeted funding support of $4,798 was provided to assist Pacific peoples doctoral students to attend

conferences in 2006 (2005: $6,351).

objective ��: to support the recruitment and development of pacific peoples staff


i. The use of relevant Pacific languages in advertisements.

In 2006 no advertisements required the use of Pacific languages (2005: none).

ii. Providing support as appropriate for Pacific staff undertaking tertiary study.

Support was made available under the University’s research development programme which supports

staff to complete postgraduate research qualifications.


�2

approach to meeting the needs of learners

objective ��: to achieve target outputs for student enrolments and performance


i. Achieving or exceeding the following total Equivalent Full-time Students (EFTS) enrolment targets:

17,940 in 2006, 17,971 in 2007 and 18,063 in 2008.

17,449 EFTS enrolments were achieved by the University together with an additional 131 EFTS enrolled

by the wider University group (2005: 17,739 University and an additional 91 group EFTS).

ii. Maintaining an average pass rate and progression rate for papers within 2% of the average for the

previous three years.

The average pass rate for 2006 was 88.0%, compared with an average of 87.6% for the previous three

years. The average progression rate for 2006 was 86.4%, compared with an average of 86.1% for the

previous three years1.

iii. Increasing the number of students successfully completing qualifications.

The number of students completing qualifications decreased to 4,493 in 2006 (2005: 4,585).

objective ��: to develop lifelong learning skills and foster intellectual independence in students


i. At least 90% of respondents to the Graduate Opinion Survey reporting some, moderate or extensive

development of a willingness to learn and independent judgement through their studies.

The percentage of respondents to the 2006 survey reporting some, moderate or extensive development of

the above attributes was as follows: a willingness to learn, 92.4% (2005: 93.5%); independent judgement,

93.3% (2005: 93.9%).

ii. The development of intellectual independence in students addressed in the development of all new

programmes and in the review of existing departments and programmes.

Developing intellectual independence in students is one of the primary aims of the University’s Teaching

and Learning Plan. Departments and schools are required to take account of the aims and goals of this

plan in the development of new programmes and papers. Review panels also consider these aims and goals

when reviewing academic departments or programmes. Responsibility for ensuring that new programmes

meet the University’s standards rests with the Boards of Graduate and Undergraduate Studies. These

boards approved 13 new programmes during 2006. The development of intellectual independence was

covered in the terms of reference of all University departmental and programme reviews in 2006.

iii. Achieving or exceeding, subject to the provision of adequate Government funding, the following

targets for EFTS enrolments in adult and community education courses: 36.3 EFTS in 2006 to

2008.

There were 32 EFTS enrolments in adult and community education courses in 2006 (2005: 38).

1 The pass rate is defined as the number of students passing as a percentage of the number sitting an examination. The progression rate is defined as the number of students passing as a percentage of the number entered for an examination, with those who entered but did not sit counted as failed.

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objective �6: to maintain and strengthen commitment to equal educational opportunities


i. At least maintaining student attendance in the Learning Assistance Support Programme.

2,489 students (2005: 1,977) attended 216 workshops (2005: 209). Individual consultations were provided

for 525 students (2005: 456).

ii. Offering at least five undergraduate scholarships per annum for students who are first in their family

to attend university.

First in Family scholarships were under review in 2006 and none were offered (2005: three).

iii. Maintaining subsidised support for the University childcare facilities.

The University provided a grant of $50,000 in 2006 and also met occupancy costs of $58,500 (2005:

$50,000 and $34,056).

objective ��: to increase the participation and achievement of disabled students at all levels and to provide appropriate academic and social support


i. Enrolling at least 650 students with a disability affecting study in each of the next three years.

The University enrolled 840 students with a disability affecting study in 2006 (2005: 814).

ii. Providing learning assistance and/or access to special equipment for at least 450 students with a

disability affecting study in each of the next three years.

Support in the form of learning assistance and/or special equipment requiring a specific financial

commitment was provided to 526 students with disabilities in 2006 (2005: 451).

iii. At least 90% of students with a disability affecting study responding to the annual Student Opinion

Survey providing a positive assessment of support from the Disabilities Office.

93.9% of respondents to the 2006 Student Opinion Survey with a disability affecting study provided a

positive assessment of the support provided by the Disabilities Office (2005: 88.6%).


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approach to ensuring a staff profile consistent with mission and purpose

objective ��: to recognise, reinforce and promote interdependence between research, teaching and professional practice


i. The interdependence between research and teaching addressed in the development of all new

programmes and in the review of existing departments and programmes.

Ensuring interdependence between research and teaching is one of the primary aims of the University’s

Teaching and Learning Plan. Departments and schools are required to take account of the aims and goals

of this plan in the development of new programmes and papers. Responsibility for ensuring that new

programmes meet the University’s standards rests with the Boards of Graduate and Undergraduate Studies.

These boards approved 13 new programmes during 2006. Review panels also consider these aims and goals

when reviewing academic departments or programmes. Interdependence between research and teaching

was covered in the terms of reference of all University departmental and programme reviews in 2006.

ii. The appointment and promotion of academic staff according to criteria that emphasise research

output and teaching, where appropriate, and professional practice.

Appropriate standards of research and teaching activity continue to be stated requirements for

appointment to and promotion within all academic positions at the assistant lecturer, lecturer, senior

lecturer and professorial levels. These criteria do not apply to positions that are explicitly designed as

teaching or research-only (e.g. teaching or research fellow).

iii. Professional accreditation of all relevant programmes maintained.

Professional accreditation was maintained for all relevant programmes.

objective ��: to provide an environment that supports the academic, professional, creative and career development of staff


i. At least 1.5% of the University salary budget provided for staff training and development.

2.5% of the University salary budget was provided for staff training and development (2005: 2.6%).

ii. Fee subsidies ranging from 25% to 100% provided for at least 250 eligible staff undertaking approved

tertiary study.

The University provided fee subsidies for 247 staff with a total value of $345,451 (2005: 240 staff and

$334,578).

objective 20: to provide staff with opportunities to interact in an international environment


i. At least maintaining the number of staff undertaking research and study leave, staff exchanges and

attending conferences of national and international standing.

821 academic staff received financial support to attend national and international conferences during the

year and 90 academic staff undertook study leave (2005: 782 and 71).

ii. Providing unrestricted staff access to the World Wide Web for work-related purposes.

All staff requiring access to the web for work purposes continued to have unrestricted access.

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objective 2�: to maintain and strengthen commitment to equal employment opportunities


i. Increasing the number of female academics holding professorial, associate professorial and senior

lecturer appointments.

The number of female academics holding professorial, associate professorial and senior lecturer

appointments in 2006 increased to 166 (2005: 147).

ii. Continuing the University mentoring programmes for general and academic staff women.

In 2006 55 academic staff women and 16 general staff women were mentored in a formal University

mentoring programme (2005: 67 staff mentored).

iii. Continuing the University Women’s Professional Development Programme and the Women in

Leadership Programme.

Two courses were offered in the Women in Leadership Programme, with 59 participants (2005: two

courses and 50 participants).


�6

co-operation and collaboration

objective 22: to foster links and encourage collaboration with appropriate institutions and organisations nationally and internationally


i. At least maintaining the number of formal agreements and contracts for collaboration with other

organisations, including Crown Research Institutes and arrangements for joint research and/or

teaching with other tertiary education institutions.

The University maintained 132 formal agreements and contracts for collaboration involving external

collaborators in 2006 (2005: 119).

ii. At least maintaining the number of academic visitors to the University.

The University hosted 525 academic visitors during 2006 (2005: 436).

objective 2�: to develop commercial activities and partnerships that complement academic research

performance indicator

i. Increasing the royalty and intellectual property sales revenues of Otago Innovation Limited as

measured by a three-year rolling average.

Otago Innovation Limited received royalty and intellectual property sales revenues of $1.2 million as

measured by a three-year rolling average (2005: 1.2 million).

objective 2�: to advise and work with local and national government


i. At least 50% of academic staff providing services to public sector departments, statutory authorities,

agencies, boards, committees, inquiries and non-governmental organisations.

61.2% of respondents to the 2006 Community Service Survey provided services to public sector

departments, statutory authorities, agencies, boards, committees, inquiries and non-governmental

organisations (2005: 62.2%).

ii. At least 20% of academic staff serving on government advisory boards and committees.

28.2% of respondents to the 2006 Community Service Survey served on government advisory boards and

committees (2005: 24.4%).

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governance and management

objective 2�: to obtain sufficient funding for current university needs and future development


i. An operating surplus such that the moving five-year average is at least 2% of net assets (excluding

extraordinary items).

The five-year moving average surplus for 2006 after adjusting for extraordinary items was 1.7% of net

assets (2005: 1.6%).

ii. A liquid ratio of no worse than 1:1.

A liquid ratio of 1.2:1 was achieved at 31 December 2006. This was calculated using current assets less

inventory and research fees receivable, divided by current liabilities less employee entitlements and

research fees received in advance (2005: 1.2:1).

iii. Net interest paid no greater than one third of the operating surplus.

The net interest paid was 0.5% of the operating surplus (2005: 0.4% of the University’s operating

surplus).

objective 26: to maintain systems for institutional quality improvement


i. Reviewing and evaluating all departments and undergraduate teaching programmes once every five

to seven years by a panel of internal and external experts.

Departmental reviews were completed as scheduled for the Departments of Anatomy and Structural

Biology, Anthropology, Chemistry, Economics, Geology, Marketing, Pathology (Dunedin), Public Health

(Christchurch), Public Health (Wellington) and Tourism. Additionally, the Master of International

Studies and the Bachelor of Applied Science and Dental Technology programmes were reviewed.

Administrative reviews of Distance Learning, the Mäori Centre and the Pacific Islands Centre were also

undertaken, along with Halls of Residence reviews of Studholme Hall and Toroa International House.

ii. Conducting annual Graduate and Student Opinion Surveys on a portion of current students and

recent graduates.

The 2006 Graduate Opinion Survey targeted 1,670 graduates who completed their Otago qualifications

in 2004 and achieved a response rate of 49.2% (2005: 1,356 and 41.5%). The 2006 Student Opinion

Survey targeted 4,973 students and achieved a response rate of 61.2% (2005: 4,913 and 45.7%).

iii. Completing a review of all new qualifications within three years of the graduation of the first cohort

of students.

Reviews were completed for 10 new qualifications following the graduation of the first cohort of

students.


��

objective 2�: to provide a culture in which all staff have the opportunity to participate in policy development


i. Staff representation on the University Council, Senate and the committees of those bodies.

A representative cross-section of staff was appointed in accordance with the approved compositions for

each committee.

ii. Regular meetings of Senate.

Senate met five times during 2006. All Senate committees met regularly.

iii. Seeking staff feedback for University reviews and major policy developments.

Staff feedback was sought for all departmental and programme reviews conducted in 2006. This feedback

was gained through review panel meetings with staff and through written submissions from staff.

objective 2�: to provide a culture in which students participate in policy development and quality improvement


i. Student membership of the University Council, Senate and Hall Councils and on appropriate

committees and working parties of those bodies.

Student members served on the University Council and Senate and on the following committees: Capital

Development Committee, Finance and Budget Committee, Appeals Board, Board of Undergraduate

Studies, Board of Graduate Studies, Committee for the Advancement of Learning and Teaching, Graduate

Research Student Liaison Committee, Lecture Theatres and Timetables Committee, Library Services

Committee, Library/Student Liaison Committee, Hocken Library Committee, Quality Advancement

Committee, Research Committee, Standing Committee of Senate, Summer School and Continuing

Education Board.

ii. Seeking student feedback on teaching and service quality via the annual Student Opinion Survey and

student evaluations of teaching.

The University conducted its annual Student Opinion Survey in 2006, targeting 4,973 students and

achieving a response rate of 61.2% (2005: 4,913 and 45.7%). 1,424 student evaluations of teaching were

also sought (2005: 1,683).

iii. Student or recent-graduate membership on all programme and academic departmental review

panels.

Student or recent graduate membership was included in the composition of all programme and academic

departmental review panels in 2006.

iv. Continuing a University-wide class representative system.

The University, in conjunction with the Otago University Students’ Association, continued to operate the

class representative system. A total of 1,394 class representatives were recorded for 2006 (2005: 1,171).

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objective 2�: to maintain tangata whenua/iwi participation in university governance


i. Continuing Te Rünanga o Ngäi Tahu membership on the University Council.

Ngäi Tahu membership on the University Council continues.

ii. Holding regular meetings of the Treaty of Waitangi Committee.

Four meetings were held in 2006 (2005: three).

Note: The University undertakes regular reviews of departments, schools, faculties and programmes. Review panels comprise a mixture of internal and

external representatives, and normally report to the Deputy Vice-Chancellor (Academic and International) who has managerial responsibility

for the process. The Deputy Vice-Chancellor (Academic and International) then consults with the Vice-Chancellor. The University’s review

guidelines recommend that the quality and adequacy of the structure, management and physical resources of the departments, schools,

faculties and programmes are investigated. In addition to this, 13 research-related items are examined in any review, which require review

panels to undertake a critical and constructive evaluation of goals, objectives, quality, extent and appropriateness of research and of the quality

of research supervision.

Similarly, the review guidelines also recommend a critical and constructive evaluation of the goals, objectives, quality, balance and

appropriateness of courses and of the quality of teaching and learning. Implicit in these guidelines is the requirement that all courses and

programmes reviewed continue to meet the standards required by the University Council and CUAP.

Six Community Service items are also examined, which require review panels to undertake a critical and constructive evaluation of the goals,

objectives, quality, balance and appropriateness of Community Service activities.

Research

The University has in place mechanisms for monitoring and improving the quality of research, scholarship and postgraduate education.

The development of research is actively supported by the University and is guided by the Research Management Plan. This plan provides broad

goals and objectives for developments in this area, highlights key policies and research strengths and includes an implementation plan detailing

specific tasks being undertaken to meet research objectives.

Standard provisions for research time and study leave support staff in their research activities. Additional initiatives include: courses for staff

on writing effective research applications; the identification of recognised research themes within the University and the provision of special

support in these areas; early career staff (those in their first three years of appointment) receiving special consideration in the awarding of

internal research funding.

The quality of research is also reflected in the work accepted for publication by publishers of scholarly books and editors of learned journals.

A list of publications is collated annually. This list is checked to ensure that all publications satisfy guidelines specified by Senate and scrutiny

by divisional heads. This vetting process, which takes place after the annual external audit cycle, typically results in the rejection of 3% of

publications.

The University’s success in attracting external research funding is also a key indicator of the standard of research.

Mechanisms for monitoring and improving the quality of postgraduate education include regular evaluations by postgraduate students on the

quality of teaching and supervision. This information assists divisions, schools and departments in improving existing courses, in developing

new courses, in monitoring and improving the standard of thesis supervision and in addressing associated issues relevant to postgraduate

education.

TeachingandLearning

The University has in place mechanisms for monitoring and improving the quality of teaching in all courses.

The mechanisms include student evaluation of teaching, undertaken according to standard procedures and guidelines set down by the

University’s Higher Education Development Centre (HEDC). This process is used to review teaching methods, content and structure, and may

also be used in considering the tenure or promotion of individual members of the academic staff.

Courses and programmes are surveyed on a four-year cycle, with student and graduate feedback being sought on such topics as assessment

practices, teaching standards and the workplace relevance of the skills being imparted. In measuring its achievement of the relevant objectives,

the University has set desirable performance indicators. In evaluations of this nature, small fluctuations are normal and are not necessarily

statistically significant. The results of these surveys provide benchmark data for performance measurement and improvement.

New papers and minor amendments to existing regulations may only be introduced following approval by the University Council. New

programmes and major amendments to existing programmes require additional approval by the Committee on University Academic

Programmes (CUAP), a committee of the New Zealand Vice-Chancellors’ Committee (NZVCC). The NZVCC holds statutory authority to

approve new programmes under the Education Amendment Act, 1990. CUAP also requires a follow-up review of any new qualification to be

undertaken once the first cohort of students has graduated.

Where appropriate, reviews may be jointly initiated by the University and an external body responsible for professional accreditation.

Independent accreditation reviews may also be undertaken, and schools and departments are actively encouraged to benchmark their teaching

and learning activities against appropriate units elsewhere in the world.

CommunityService

The University is continuing to develop mechanisms for monitoring and improving the quality of community service.

A major step in this process has been to quantify, as far as possible, the current community service output of the institution. To assist in this,

the University conducted its first comprehensive survey of staff involvement in community service activities in 1997 and has repeated this

exercise annually since. The 2006 survey found 93.2% of academic staff who responded were involved in community service activities, and

that these staff spent an average of 9.3% of their work time on community service activities. The activities in which they were involved ranged

from service on government advisory boards and committees to presentations made to school and community groups on areas of professional

expertise.

The information gathered in this survey assists the University in placing a financial value on its community service output.


�0

statement of resources

human resources

The total number of staff employed by the University decreased by 1.7% during 2006 to 3,250 in full-time

equivalent (FTE) terms (2005: 3,307). Decreases occurred across all categories of staff, with the number of

academic and research staff falling marginally by 0.4%, from 1,048 to 1,044, the number of research-only

staff falling slightly by 2.5%, from 571 to 557 and general staff dropping by 2.3% from 1,688 to 1,649.

A number of factors contributed to these declines. The key contributor to the fall in academic and

research staff numbers was a reduction in the number of fixed-term teaching-only positions in response

to changing student numbers. The number of tenured and tenure-track academic staff at lecturer level

and above actually increased in 2006, by 31, or 3.0%.

Research-only staff numbers declined due to changing research requirements.

Changing student numbers had a slight impact on general staff positions, as did structural changes in

particular areas of the University. Additionally, the combination of a buoyant general employment market and

tight fiscal constraints in some areas of the University caused delays in appointments to some positions.

summary staff profile

2006 2005 2004 2003

Full-timeEquivalent(FTE)Academic&ResearchStaff

Females 391 381 381 349

Males 653 667 661 666

Total 1,044 1,048 1,042 1,015

Full-timeEquivalent(FTE)Research-onlyStaff

Females 341 360 322 284

Males 216 211 214 221

Total 557 571 536 505

Full-timeEquivalent(FTE)GeneralStaff

Females 1,043 1,086 1,119 1,051

Males 606 602 562 543

Total 1,649 1,688 1,681 1,594

TotalStaff 3,250 3,307 3,259 3,114

information services

library

The Library continued to develop its on-site and online resources. The total number of items held by

the Library rose by 32,298 to 2,871,114, an increase of 1.1%. The Library added to its holdings of books,

increasing the collection from 920,264 to 958,607, but its holding of serials was reduced from 510,234

to 494,732. In addition, it now holds 227,467 microfilms (2005: 224,987) and 1,190,299 other non-book

items (2005: 1,183,331).

The total number of serials received rose by 12.9% to 77,770. Over 90% of serials are now received in

electronic rather than print form, compared to just 71.5% five years ago.

information technology

The growth of electronic communications seen in recent years continued unabated in 2006. The volume

of off-campus computer and telecommunications network traffic rose from 31,397,634 megabytes in 2005

to 42,432,129 megabytes in 2006, an increase of 35.1%.

During 2006 the University also laid a platform for further growth in network traffic with the

commissioning, late in the year, of a new high-speed next-generation external internet link that connects

with other tertiary education and research organisations. The roll-out of wireless networks within the

campus also commenced during the year.

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physical resources

land

There was no increase in the land controlled by the University in 2006.

2006 2005 2004 2003Land (ha) (ha) (ha) (ha)

Land owned by the University 22.9 22.9 22.9 22.4

Land in Crown title for the University 8.5 8.5 8.5 8.5

Endowment leasehold 25,585.3 25,585.3 25,585.3 25,585.3

TotalLandControlledbytheUniversity 25,616.7 25,616.7 25,616.7 25,616.2

buildings

The University’s net assignable floor space increased by 1,342 square metres in 2006 to 181,466 m2 with the

addition of the new Pacific Islands Centre, the Te Tumu extension and the acquisition of a number of other

buildings. Further details of capital projects undertaken during 2006 are provided later in this section.

2006 2005 2004 2003

Humanities 14,094 12,999 12,818 12,335

Science 37,626 37,633 37,640 37,703

Health Sciences 61,243 61,203 60,948 59,633

Commerce 9,056 9,085 9,286 9,273

Administration & other 42,936 17,940 18,072 18,907

Corporate 4,446 4,445 4,458 4,452

Information Services 12,065 36,819 36,819 36,981

Total 181,466 180,124 180,041 179,284

equal opportunities

The University Charter identifies partnerships with tangata whenua, and equity in employment and

educational opportunity as core values of this institution.

The University contributes to the achievements of tangata whenua through a Treaty-based partnership,

primarily with Ngäi Tahu. The partnership is underpinned by a Memorandum of Understanding and

recognises Ngäi Tahu rangatiratanga and mana within the takiwä of Ngäi Tahu. A revised Memorandum

of Understanding is expected to be signed by Ngäi Tahu and the University of Otago in 2007.

The University discussed Treaty-based agreements with other iwi and iwi organisations during 2006. A

Memorandum of Agreement was signed by the University of Otago and Te Rünanga o Ngäti Whätua in

July 2006 and a Memorandum of Agreement with Te Arawa was finalised for a planned signing in 2007.

Dialogue continued with Ngäti Toa in Wellington, around the potential of developing a Memorandum

of Agreement. The Memorandum of Understanding with Ngäti Porou Hauora continued to strengthen

activity in areas of common interest, and discussions have been initiated with regard to the review of the

memorandum in 2007.

equal educational opportunities

The University is committed to eliminating unnecessary barriers to the admission and progress

of students. A key component of its strategy in this area is the provision of support and recruitment


�2

initiatives for students from groups which may be under-represented within the institution and who may

be disadvantaged in terms of their ability to attend the institution.

The number of Mäori students increased by 2.9% in 2006, from 1,329 to 1,368. Mäori students now

comprise 8.0% of the University’s domestic student population, compared with 6.0% a decade ago.

During 2006 Te Huka Matauraka (the Mäori Centre) continued to provide primary support for the

academic and social needs of Mäori students, aided by the move to new premises. Operating from a

kaupapa Mäori base, Te Huka Matauraka provided both a meeting point for students and a wide range

of services that included scholarship information, tutorials, study-skills seminars and general student

support. It also acted as a focal point for liaison with iwi and Mäori student groups.

Tutorial support was provided for students enrolled in all four of the University’s teaching divisions.

Pre-graduation ceremonies were held, with graduands, their whänau, University staff, Mäori student

representatives, local runanga representatives, iwi community members and other invited guests attending.

Te Huka Matauraka staff visited schools and education expos and the Mäori liaison officer, based at the

University’s Auckland Centre, provided a full-time service visiting schools and marae to advise and assist

young Mäori in planning for future participation in tertiary education.

iwi to which students are affliated

2006 2005

First Any First Any Affliation Affiliation Affliation Affiliation

Käti Mamoe 10 49 8 43

Ngäi Tahu 286 335 287 331

Ngäi Te Rangi 11 22 2 21

Ngäpuhi 154 216 157 216

Ngäti Awa 38 48 30 39

Ngäti Kahungunu Ki Heretaunga 31 41 25 36

Ngäti Kahungunu Ki Te Wairoa 31 56 26 44

Ngäti Kahungunu Ki Wairarapa 15 21 19 25

Ngäti Maniapoto 40 52 33 47

Ngäti Pikiao 11 24 14 22

Ngäti Porou 118 153 101 139

Ngäti Raukawa (Horowhenua - Manawatu) 35 49 31 46

Ngäti Raukawa (Waikato - King Country) 11 21 10 16

Ngäti Ruanui 9 20 7 16

Ngäti Whakaue 16 34 21 36

Ngati Whatua 17 30 13 22

Te äti Awa (Taranaki) 31 50 26 39

Te äti Hau-Nui-A-Päparangi 11 19 6 13

Te Rarawa 23 40 19 38

Tühoe 28 48 28 48

Ngäti Tüwharetoa 34 63 32 56

Waikato 14 26 23 37

Whakatöhea 18 28 18 29

Other /Unknown 374 693 297 564

Total 1,366 n/a 1,233 n/a

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There were 545 Pacific Islands students enrolled in 2006, an increase of 3.2% over 2005. The Pacific

Islands Centre provided tutorial assistance, support and advice to an increasing number of Pacific

peoples students. Pacific postgraduate students had an opportunity to present their work at the two-day

Pacific Postgraduate Symposium and at 16 seminars held throughout the academic year. The publication

of Pacific Voices, a collection of student research abstracts, continued, as did the mentoring programme

for Pacific Islands students with 354 students participating.

Study grants for Mäori and Pacific Islands students continued to be available and this year 30 new

undergraduate scholarships were introduced for Mäori and Pacific Islands students embarking on

University study.

ServicesprovidedbyPacificIslandsCentre 2006 2005

Registered with the centre 360 507

Extra tutorials 34 27

Career advisory services seminar 4 3

Students receiving course advice 230 245

Pacific postgraduate seminars 16 11

Student gatherings 14 10

Community meetings/consultation 12 4

Community functions attended 24 47

Students receiving counselling 125 13

The Disabilities Information and Support Service provided assistance for students with disabilities.

Operating within the overall framework of the University’s disabilities support plan, the service works in

conjunction with both academic and administrative departments.

840 students with a disability affecting study were enrolled in 2006, up from 814 in 2005. Provision

of support in the form of learning assistance and/or special equipment requiring a specific financial

commitment was provided to 526 students with disabilities in 2006 (2005: 451). 475 received learning

support in the form of note-taking, interpreting, tutoring, or assistance with examinations, research,

transcription or reading (2005: 388). Alternative examination arrangements were put in place for 274

students and 171 received assistance with parking arrangements, photocopying, equipment loan, remote

dial-in to campus or access to remote library services (2005: 256 and 207 respectively).

Numberofstudentssupported 2006 2005 2004

Note-taking 265 173 207

Tutoring 94 80 94

Transcription/typing 3 0 4

Reader 0 1 5

Assistant 11 9 10

Examination arrangements 274 256 296

Other 1 3 0


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equal employment opportunities

In 2006 the number of women in senior academic positions (senior lecturer and above) increased by

12% to 166 FTE. Women now comprise 26.4% of staff at these levels, compared to 22.3% five years ago.

Overall, women comprised 45.6% of all academic and research staff in 2006, compared to 42.6% five

years ago.

The University’s progress towards achieving gender equity among senior academic staff included the

appointment of two women to established chairs and the promotion of another woman professor, two

female promotions to associate professor and three new female research associate professors. 2006 also

saw women appointed to the new posts of Pro-Vice-Chancellor (International) and Dean of the College of

Education, while the School of Medical Sciences celebrated the appointment of its first female dean.

Another notable equity first was the promotion of a Pacific Islands staff member to a Personal Chair

in Law.

The proportion of men employed as general staff increased slightly from 35.1% to 36.7%. While the

majority of general staff are female, women remain under-represented at the senior levels within the

general and management staff.

The Women’s Professional Development Programme continued in 2006 with two follow-up sessions

on Women in Leadership at which course participants from the 2005 programme reported back on the

progress of individual projects. Mentoring programmes were also run for both academic and general staff

women organised by HEDC and Human Resources respectively. The University undertook an EEO audit

and work progressed on the collection and use of EEO data.

The University continued to provide a Treaty of Waitangi Education Programme for both academic and

general staff in 2006. A total of 167 staff, a slight increase on 2005, attended a range of Treaty workshops. The

programme included Mäori Culture, an introduction to the Treaty of Waitangi, advanced Treaty course

and Policy for Research Consultation with Mäori. Three fewer workshops were run on Mäori Language

(Pronunciation and Introduction to Mäori Language) than last year and there was a corresponding drop

in attendance from 133 to 73.

Awhi Mai Awhi Atu, an organisation to “affirm, support and strengthen the role of Mäori staff in the

University”, was formally constituted in November 2006.

staff support initiatives

The Employee Assistance Programme continued in 2006, providing confidential, short-term counselling

at no cost to the individual. Staff training courses on occupational health and safety issues continued to

be offered. Support for childcare was provided through the Otago University Childcare Association, with

the University providing funds to subsidise the service, which is available to students and staff.

capital developments

2006 was another busy year in terms of capital development with a number of projects started and/or

completed.

As reported in last year’s Annual Report, the Arana College, Te Tumu, Union postgraduate space and

Union kitchen projects were completed as programmed and within budget. These projects achieved a

high quality in design and construction, and provide the University with functional facilities of which it

can be proud.

The University continues to face a shortage of space and planning is under way to effectively deliver the

University Council-approved Critical Space Plan, a group of projects of the highest priority.

Work continued on the University of Otago Christchurch School of Medicine and Health Sciences

developments, with the west clip-on being completed on time in early December and within budget.

Stage 2 of the development, the redevelopment of the ground and 7th floors, will continue during 2007

and be programmed around the ongoing operations of the School.

��

The $20.3 million redevelopment of teaching and administration space at the Wellington School of

Medicine and Health Sciences, approved in November 2005, began in January 2006. The project will be

completed early in 2007 and well within the approved budget. It will provide a well-designed and quality

teaching, library and administration space.

In late 2006 University Council approved:

• the construction of an aquarium and associated laboratory building for Zoology at an estimated cost of

$4.35 million

• the construction of a second computing server room to serve as a back-up and overflow for the

University’s current facility. The approved budget for this project is $2.5 million.

Council also approved in principle a proposal to construct a new Psychology building in a cost range of $24

– $27 million. Designs and detailed estimates are now being developed. A final proposal will come back to

University Council by mid 2007 with construction planned to start in the last quarter of that year.

A number of property purchases were started and/or completed in 2006, the most notable being 1, 3 and 5

Leithbank, 281 Great King Street, 541 Castle Street and the residential properties of the Stuart Residence

Halls Council. Although not actively in the market to purchase properties, the University has and will

continue to purchase properties it considers strategic.

2006 saw considerable planning towards the merger of the University of Otago and the Dunedin College

of Education with some work being completed prior to the merger date of 1 January 2007. Construction,

data and specialist sound and vision work will continue in the first semester of 2007 to ensure the merged

entity, the University of Otago College of Education, will operate from one site for Semester Two.


�6

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financial review 2006

After five successive years of growth in student numbers, the University experienced a small enrolment

decline of 1.6% in 2006. Despite this, financial performance remained strong.

The University Group, which includes the University itself, University of Otago Holdings Limited and

the University Trusts, produced an operating surplus of $30.5 million for the year. The surplus was $13.7

million (81.5%) greater than the budget and $9.6 million (45.8%) greater than last year. The improvement

over budget was attributable to both the University and the Trusts, while the better performance compared

with last year was due entirely to the Trusts. The Group surplus represented a return of 7.1% on revenue

of $430.5 million and 2.7% on equity of $1.1 billion. This was comfortably above the Tertiary Advisory

Monitoring Unit guidelines of 3% and 1.2% respectively.

The University’s operating surplus for the year was $16.7 million. While this was $7.1 million (75.1%)

above the budget, it was lower than the surplus achieved in 2005 by $0.3 million (1.9%). While all of the

University’s academic divisions managed to operate within their available funding, it remains a concern

that the academic activity of some departments continues to be constrained by difficulties in recruiting

staff and by space shortages.

The University’s surplus, like that of the Group, exceeded the guidelines of the Tertiary Advisory

Monitoring Unit. The five-year moving average surplus, which is the key University internal financial

performance indicator, was $14.4 million. This is an improvement over the $12.2 million average recorded

in 2005, but is still below the new University fiscal target of 2% of net assets, which would require an

average over the last five years of around $17 million. However, when the new target was approved by the

University Council, it was expected that it would take some time to achieve.

The Trusts comprise over 240 individual trust funds and collectively provided an operating surplus of

$15.0 million for the year. This was $6.7 million (81.6%) better than budget and $10.7 million (245.0%)

higher than last year, thanks largely to a number of substantial donations to the Leading Thinkers

Programme, which aims to raise $50 million for professorial chairs by matching private donations with

$25 million of Government funding. The investment portfolio of the Trusts also produced good returns

with a net return on investment for the year of 13.1%, an increase over the 8.5% achieved in 2005. The

average net return on funds over the last 10 years is now 10.1%.

The companies owned by University of Otago Holdings Limited produced a deficit of $1.2 million for the

year, which was higher than the deficit of $0.2 million last year and the budgeted deficit of $1.0 million.

A major contributor to this deterioration was University of Otago Foundation Studies Limited which

produced a deficit of $0.7 million due to a major decline in international enrolments. This trend, which

started in 2005 and continued into 2006, is troubling all similar providers. The majority of the other

companies in the group performed at above-budget levels for the year.

Cash flow from operating activities was especially strong during the year with both the University and the

Group exceeding budget and last year. While the strong operating cash flows helped produce an overall

cash surplus of $1.5 million for the University, the total cash flow for the Group was a deficit of $4.8

million due to large cash outflows for investing activities.

The strong cash flow for the year enabled the University to avoid drawing on the loan facility it holds with

its bankers. This meant that long-term liabilities remained very low and largely comprised of employee

entitlements of $22.4 million falling due beyond 2007, and $17.0 million of loans related to the Leading

Thinkers Programme and the merger with the Dunedin College of Education, which took effect on 1

January 2007. All but $0.5 million of these loans are from Government and will be converted to equity

once certain conditions relating to the performance of the Leading Thinkers projects are met and planned

outcomes, included in the merger Business Plan, are achieved.

Total assets for the Group now exceed $1.2 billion with total assets of the University itself topping the

billion dollar mark for the first time at $1.1 billion. The University continued to replace and expand its

infrastructure by investing $63.9 million in assets during the year with expenditure of $34.2 million

on land and buildings, $23.2 million on equipment, software and systems, and $6.5 million on library

books and special library collections. The University also revalued its land and buildings during the year

and this added another $158.0 million to asset values due to substantial increases in building costs and a

strong demand for land in Dunedin pushing up values.


��

The Group’s equity at year end was $1.1 billion with the University contributing $933.2 million of this

total. This is the first time that the Group has reached this mark and is only the second University, after

the University of Auckland, to have equity in excess of a billion dollars.

Conclusion

The financial outcome for the year was pleasing with solid surpluses and good cash flow achieved by both

the University and the Group. This, together with no significant long-term debt, produced a very strong

financial position at the end of 2006.

A continuation of this strong financial performance will be essential if the University is to complete the

almost $140 million of building projects on its Critical Space Plan by 2011. This work, together with major

new developments in teaching and research, is key to achieving the University’s Strategic Direction to 2012

and contributing to the Government’s tertiary education strategy.

A J Patrick

Chief Operating Officer

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statement of responsibility

2006 financial statements

1. The Council and management of the University of Otago accept responsibility for the preparation of the annual financial statements and the statement of service performance and the judgements used in them;

2. The Council and management of the University of Otago accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; and

3. In the opinion of the Council and management of the University of Otago, the annual financial statements and the statement of service performance for the financial year ending 31 December 2006 fairly reflect the financial position and operations of the University of Otago.

The financial statements were authorised for issue by the Council on 13 March 2007.

chancellor

vice-chancellor

chief operating officer

march 200�


60

statement of accounting policiesfor the year ended �� december 2006

the reporting entity

The University of Otago was founded in 1869 by the Ordinance of the Otago Provincial Council and

is New Zealand’s oldest University. In 1874 the University of Otago became an affiliated college of the

University of New Zealand, which was established by statute in 1870. However, in 1961 the University

of New Zealand was disestablished and the University of Otago acquired its present legal status and was

granted the power to confer degrees by the University of Otago Amendment Act 1961.

The accompanying financial statements are presented in accordance with Section 220 of the Education

Act 1989, the Crown Entities Act 2004 and Generally Accepted Accounting Practice in New Zealand.

The financial statements presented here are for the reporting entity University of Otago, group companies

and controlled Trusts.

The group companies are:

~ University of Otago Holdings Limited. Holding company. 100% owned by the University.

~ Otago Innovation Limited. Company to hold and develop the commercial interests of the University.

100% owned by University of Otago Holdings Limited.

~ University of Otago Foundation Studies Limited. Operates the Foundation Year programme and an

English language school. 100% owned by University of Otago Holdings Limited.

~ University of Otago Press Limited. Not trading. 100% owned by University of Otago Holdings

Limited.

~ University Union Limited. Owner of the University Union building. 50% owned by University of

Otago Holdings Limited.

~ New Zealand Centre for Reproductive Medicine Limited. Provides human fertility services. 50%

owned by University of Otago Holdings Limited.

~ Unihealth Limited. Not trading. 50% owned by University of Otago Holdings Limited.

~ LCo New Zealand Limited. Owns and operates a library system serving four universities. 31% owned

by University of Otago Holdings Limited.

~ Unipol Recreation Limited. Provides gymnasium and recreational services to University of Otago

and Otago Polytechnic students and staff. 40% owned by University of Otago Holdings Limited.

~ BPAC NZ Limited. This company works with the School of Pharmacy to provide best practice

advocacy services to primary, secondary and tertiary health providers in the area of medication

prescribing. 25% owned by University of Otago Holdings Limited.

~ Upstart Trustee Company Limited. 33% owned by University of Otago Holdings Limited.

~ Immune Solutions Limited. This company is working with the Department of Microbiology to

develop oral vaccines for the treatment of tuberculosis in animals, particularly possums. 100%

owned by Otago Innovation Limited.

~ Iso-trace NZ Limited. Provides isotopic analysis for research, forensic and environmental purposes.

100% owned by Otago Innovation Limited.

~ Delta S Technology Limited. Developer of heat pump technology for industrial uses. 67.8% owned by

Otago Innovation Limited.

~ ComOne Limited. A medical research company which is developing various medicines and vaccines.

25% owned by Otago Innovation Limited.

~ Photonic Innovation Limited. Developer of revolutionary laser technology. 50% owned by Otago

Innovation Limited.

~ Medialab Limited. Provides technical consulting advice to the telecommunications industry. 50%

owned by Otago Innovation Limited.

6�

The controlled Trusts include the University of Otago Foundation Trust, the Hocken Trust and several

other Trusts established for the benefit of the University of Otago. The University is the beneficiary of all

the Trusts and in most cases acts as Trustee or appoints the Trustees.

The University is organised into divisions.

There are four teaching and research divisions: Commerce, Health Sciences, Humanities, Sciences;

and nine service divisions: Information Technology Services, Property Services, Financial Services,

Marketing and Communications, Academic Services, Student Services, Human Resources, Research and

Enterprise, and Accommodation Services.

measurement system

The accounting principles followed by the group are those recognised as appropriate for the measurement

and reporting of financial performance and financial position on a historical cost basis, with the exception

that certain fixed assets have been revalued.

basis of preparation of the financial statements

The financial statements include:

~ Statement of Financial Performance

~ Statement of Movements in Equity

~ Statement of Financial Position

~ Statement of Cash Flows and

~ Statement of Commitments and Contingencies.

The financial statements include the operations of the University of Otago, its subsidiary and associate

companies and its controlled Trusts. The subsidiary companies and trusts have been included in the

consolidated accounts by line aggregation of assets, liabilities, revenues, expenses and cashflows. Associate

companies have been consolidated on an equity accounting basis, which shows the share of the surpluses/

deficit in the University’s statement of financial performance and the share of post-acquisition increases/

decreases in net assets in the University’s statement of financial position.

All significant inter-entity transactions have been eliminated on consolidation.

accounting policies

The following accounting policies, which materially affect the measurement of financial performance

and financial position, have been applied.

�. revenues

GovernmentGrantsandStudentFees

Government grants and student fees are recognised as income on entitlement.

ResearchFunds

Revenue received for research which will provide reciprocal benefits to the research funding provider

is recognised in the Statement of Financial Performance as “Externally Funded Research” income

when research expenditure is incurred. Those research funds which are not expended at year end

are included in the Statement of Financial Position as “Funds Received in Advance” to recognise the

future obligation to complete the research (refer also to Note 11).

Revenue for research which provides no reciprocal benefits to the research funding provider is

recognised in the Statement of Financial Performance as “Externally Funded Research” income

when received.


62

2. budgets

The budgets used in these accounts have been updated to reflect actual EFTS enrolments at 31 March

2006, together with adjustments for any significant changes in revenue and costs that became evident

after the original budget was prepared. This revised budget was approved by the University Council

on 11 July 2006.

�. foreign currencies

Transactions and balances in foreign currencies are converted at the New Zealand rate of exchange

ruling at the date of the transaction and balance date respectively. Foreign exchange gains and losses

have been recognised in the Statement of Financial Performance.

�. accounts receivable

Accounts receivable are valued at estimated realisable value. Amounts not considered recoverable are

written off in the period in which they are identified.

�. investments

University of Otago investments, except for equities held for resale, are valued at cost plus (or less)

the portion of any discount (or premium) on purchase allocated over the time to maturity. Equities

held for resale are valued at market value on balance date.

Investments held by controlled Trusts are valued at cost.

All investments held by University of Otago Holdings Limited are valued at cost except for investments

in associate companies which are valued at cost plus the share of retained profits.

Otago Innovation Limited accounts for its investments as follows:

~ Investments are stated at fair value in the statement of financial position

~ Investments are initially stated at cost

~ Listed investments are restated annually at closing market prices on the recognised stock

exchanges

~ Unlisted investments are valued at cost unless subsequent financings or other events indicate

that a different valuation is warranted. The information used to determine fair value is

dependent on the stage the project is at and whether an active market exists. The directors

review all investments for impairment annually.

~ The valuation of unlisted investments reflects current circumstances; realisable value in the

long term could differ materially from the amount at which these investments are included in

the accounts.

6. fixed assets

The University’s land and buildings are revalued when there has been a significant movement in the

market value or depreciated replacement cost. They were revalued on 31 December 2006 in accordance

with Financial Reporting Standard 3, “Accounting for Property Plant and Equipment”, and the New

Zealand Property Institute’s Valuation Standard 3, “Valuations for Financial Reporting”. The basis

of valuation was as follows:

~ Land was valued at market value

~ Specialised buildings and improvements were valued at depreciated replacement cost

~ Non-specialised buildings and improvements were valued at market value.

The valuation was completed by a registered valuer employed by the University and has been

reviewed by an independent registered valuer (Chapman Consulting Otago Limited) and confirmed

as appropriate for financial reporting purposes (refer also to Note 8).

All Crown-owned land and buildings (if any) used by the University are included as part of the

University’s assets. Although legal title has not been transferred, the University has assumed all the

normal risks and rewards of ownership.

Capital work in progress is valued at cost and is not depreciated.

6�

Library books and periodicals, with the exception of rare books and special library collections, have

been valued at cost. Library electronic resources in the form of annual subscriptions are written off

at the time of purchase.

Rare books and special library collections were valued as at 31 December 1994 by expert University

Library staff, based on the net current value of items following the generally accepted methodology

employed by the Alexander Turnbull Library. Any additions to the collection have been valued at

cost (refer also to Note 9).

The University’s artworks were revalued on 1 January 2006 to market value by Peter Webb Galleries

Limited. The valuation was assessed in accordance with Financial Reporting Standard 3, “Accounting

for Property Plant and Equipment”.

Plant, motor vehicles, equipment and furniture are recorded at cost. Asset purchases of less than

$2,000 are written off at cost on acquisition, with the exception of furniture and computers which

are capitalised regardless of cost.

The useful life of each asset class and the depreciation rates used in the preparation of these statements

are as follows:

Asset Class Useful Life Depreciation Rate (Years)

Buildings and components Site improvements 50 to 100 1.0% to 2.0% Structure including walls 40 to 250 0.4% to 2.5% Roof 25 to 100 1.0% to 4.0% Plumbing 40 to 60 1.7% to 2.5% Lifts 40 to 50 2.0% to 2.5% Heating and ventilation 30 to 60 1.7% to 3.3% Flume cupboards 15 6.7% Floor coverings and chattels 10 to 40 2.5% to 10.0% Fit-out 30 to 75 1.3% to 3.3% Fire protection 50 to 60 1.7% to 2.0% Electrical 40 to 50 2.0% to 2.5% Data network 15 6.7%Motor vehicles and trailers 3 to 10 10.0% to 33.3%Furniture and fittings 5 to 10 10.0% to 20.0%Plant and equipment 4 to 37 2.7% to 25.0%Computers and photocopiers 4 to 10 10.0% to 25.0%Library collections 3 to 10 10.0% to 33.3%

Software 3 to 25 4.0% to 33.3%

Depreciation of all assets, except for land, artworks, rare books and special library collections, is

provided for on a straight line basis at rates that will write off their cost, less any residual value,

over their estimated useful lives. Land, artworks, rare books and special library collections are not

depreciated.

�. inventory

Inventories have been valued at the lower of cost and net realisable value. Cost is determined on a

first-in first-out basis, or by the weighted average method. Obsolete inventories have been written

off.

�. goods and services tax (gst)

The financial statements are prepared on a basis which excludes GST. Accounts receivable and

accounts payable are GST inclusive. GST owing to the Inland Revenue Department as at 31 December

2006 is included in accounts payable.


6�

�. employee entitlements

Annual leave for academic and general staff has been accrued. In addition an accrual has been made

for retirement gratuities and sick leave for both academic and general staff, and long service leave for

general staff. Retirement gratuities, long service and sick leave have been accrued on the following

basis:

• Long service leave which has vested in the employee (an entitlement has been established) has

been measured at nominal value using remuneration rates current at reporting date. This is

included as a Current Liability.

• Retirement gratuities which have vested in the employee (an entitlement has been established)

have been measured at nominal value using remuneration rates current at the time of entitlement.

This is included as a Current Liability.

• Retirement gratuities and long service leave which have not yet vested in the employee (no

entitlement has been established) have been measured using the present value measurement

basis which discounts expected future cash outflows. This is treated as a Non-Current Liability.

It is included to comply with “generally accepted accounting practice” as defined in the Financial

Reporting Act 1993 and results from the adoption of Australian Accounting Standard AASB

1028: “Accounting for Employee Entitlements”.

• Sick leave has been measured using the present value measurement basis which discounts

expected future cash outflows. This is treated as a Non-Current Liability.

• Employee entitlements relating to the sale of intellectual property have been valued using the

value at Balance Date of the intellectual property as the basis for the entitlement.

�0. financial instruments

The University is party to financial instruments as part of its everyday operations. These financial

instruments include bank accounts, investments, accounts receivables, prepayments, accounts

payables and loans. Revenues and expenses, including gains and losses in relation to all financial

instruments, are recognised in the Statement of Financial Performance. Except for loans, which are

recorded at cost, and those items covered by a separate accounting policy, all financial instruments

are shown at their estimated fair value (refer also to Note 14).

��. finance leases

Finance leases, which effectively transfer to the University of Otago and group companies all the

risks and benefits incidental to ownership of the leased item, are capitalised. The leased assets and

corresponding lease liabilities are disclosed and the leased assets are depreciated over the period that

benefits are received from their use.

�2. statement of cash flows

“Cash” means cash balances on hand, held in bank accounts, demand deposits and other highly

liquid investments in which the University invests as part of its day-to-day cash management.

“OperatingActivities” include cash received from all income sources and record the cash

payments made for the supply of goods and services.

“InvestingActivities” are those activities relating to the acquisition and disposal of non-current

assets.

“FinancingActivities” comprise activities that change the debt structure of the University.

��. taxation

The University, its subsidiaries and Trusts are exempt from the payment of income tax as they are

treated by Inland Revenue Department as charitable organisations. Accordingly, no charge for

income tax applies or has been provided for.

changes in accounting policies

All accounting policies have been applied on a basis consistent with the previous year.

6�

the statement of accounting policies and the notes to the financial statements form part of and are to be read in conjunction with this statement.

statement of financial performance

for the year ended �� december 2006

Consolidated University

This Year Budget Last Year This Year Budget Last Year

Note $000 $000 $000 $000 $000 $000

income

Government Grants 1 174,292 171,648 158,949 173,448 170,971 158,371

Domestic Tuition Fees 65,963 65,628 64,386 65,658 65,302 63,878

International Tuition Fees 34,352 32,810 33,345 31,689 29,780 30,265

Accommodation Income 21,156 20,374 19,786 21,156 20,374 19,786

Investment Income 2 13,778 11,109 11,089 5,052 4,894 4,893

Externally-funded Research 67,509 67,184 67,200 67,202 66,907 66,789

Distributions from Trust Funds 4,657 4,677 2,940

Consulting and Commercial Income 40,730 36,011 36,970 40,024 35,918 36,975

Sale of Intellectual Property 302 286 1,514 50 126 1,238

Trust Donations 11,589 7,322 2,620

Other Income 3 787 786 1,131 727 675 1,066

TotalIncome 430,458 413,158 396,990 409,663 399,624 386,201

expenditure

Salaries – Academic 131,413 131,906 122,450 129,094 129,649 119,913

Salaries – General 93,967 95,164 88,321 91,863 92,981 86,212

Staff-related Costs 12,456 9,281 14,114 12,401 9,215 14,061

Consumables and General 73,202 69,991 68,794 70,986 68,541 66,912

Depreciation 39,506 38,732 37,426 39,213 38,429 37,103

Occupancy Costs 33,997 35,104 31,555 33,996 35,101 31,579

Scholarships 15,460 16,198 13,441 15,460 16,198 13,441

TotalExpenditure 4 400,001 396,376 376,101 393,013 390,114 369,221

NetSurplus 30,457 16,782 20,889 16,650 9,510 16,980


66


statement of movements in equity




$000 $000 $000 $000 $000 $000

Opening Balance of Equity 917,259 917,258 896,330 758,561 758,561 741,581

Net Surplus for the Period 30,457 16,782 20,889 16,650 9,510 16,980

Increase (Decrease) in 173,822 157,981

Property Revaluation Reserve

TotalRecognisedRevenues

andExpensesforthePeriod 204,279 16,782 20,889 174,631 9,510 16,980

Minority Interest (37) 2 40

ClosingBalanceofEquity 1,121,501 934,042 917,259 933,192 768,071 758,561

6�


statement of financial positionas at �� december 2006



Note $000 $000 $000 $000 $000 $000

assets

CurrentAssets

Cash and Bank 5 5,649 1,169 1,779 200 914

Bank Short-term Investments 30,689 44,919 38,985 19,267 1,353 16,463

Accounts Receivable and Prepayments 6 27,844 25,841 27,154 26,907 24,346 25,592

Inventory 686 744 724 686 741 721

TotalCurrentAssets 64,868 72,673 68,642 46,860 26,640 43,690

Non-currentAssets

Investments 7 96,786 64,601 68,670 29,902 31,782 22,040

Fixed Assets 8&9 1,080,440 907,922 880,997 975,219 819,628 792,535

TotalNon-currentAssets 1,177,226 972,523 949,667 1,005,121 851,410 814,575

TotalAssets 1,242,094 1,045,196 1,018,309 1,051,981 878,050 858,265

liabilities

CurrentLiabilities

Bank Overdraft 5 369 369

Accounts Payable and Accruals 10 28,028 27,692 27,430 27,606 27,567 27,134

Funds Received in Advance 11 24,817 17,399 18,774 23,615 16,538 17,912

Employee Entitlements 12 27,961 29,108 27,093 27,781 28,919 26,905

TotalCurrentLiabilities 81,175 74,199 73,297 79,371 73,024 71,951

Non-currentLiabilities

Employee Entitlements 12 22,409 20,771 20,049 22,409 20,771 20,049

Loans and Leases 13 17,009 16,184 7,704 17,009 16,184 7,704

TotalNon-currentLiabilities 39,418 36,955 27,753 39,418 36,955 27,753

equity

General Reserve 538,630 524,993 508,210 366,162 359,022 349,512

Property Revaluation Reserve 582,871 409,049 409,049 567,030 409,049 409,049

TotalEquity 1,121,501 934,042 917,259 933,192 768,071 758,561

TotalLiabilities&Equity 1,242,094 1,045,196 1,018,309 1,051,981 878,050 858,265


6�


statement of cash flows




Note $000 $000 $000 $000 $000 $000

operating activitiesCash was provided from:

Government Grant 175,420 172,062 158,961 174,576 171,385 158,383

Revenue from Fees 100,354 97,068 97,766 97,065 93,832 94,189

Revenue from Services 142,793 132,914 122,875 137,697 129,162 124,096

Investment Income 15,511 10,741 8,844 5,086 5,007 4,446

434,078 412,785 388,446 414,424 399,386 381,114

Cash was applied to:

Employees and Suppliers 356,849 355,904 327,371 350,789 349,250 320,571

356,849 355,904 327,371 350,789 349,250 320,571

NetCashFlowsfromOperatingActivities 77,229 56,881 61,075 63,635 50,136 60,543

investing activities

Cash was provided from:

Investments 359 4,904 298 67 318

Sale of Fixed Assets 172 156 73 172 156 73

531 5,060 371 239 474 73


Investments 29,303 83 10,318 9,507 10,060 9,021

Fixed Assets Acquired 62,768 65,015 60,437 62,401 64,854 60,271

92,071 65,098 70,755 71,908 74,914 69,292

NetCashFlowsfromInvestingActivities (91,540) (60,038) (70,384) (71,669) (74,440) (69,219)

financing activities

Cash was provided from:

Loans Raised 9,555 8,730 7,801 9,555 8,730 7,704

9,555 8,730 7,801 9,555 8,730 7,704


Reduce Government Funds Held in Trust 250 43 250 43

Reduce Liabilities 40 74

40 250 117 250 43

NetCashFlowsfromFinancingActivities 9,515 8,480 7,684 9,555 8,480 7,661

TotalCashFlows (4,796) 5,323 (1,625) 1,521 (15,824) (1,015)

Opening Balance 40,765 40,765 42,389 17,377 17,377 18,392

ClosingBalance 35,969 46,088 40,764 18,898 1,553 17,377

Representedby:

Cash and Bank 5 5,280 1,169 1,779 (369) 200 914

Bank Short-term Investments 30,689 44,919 38,985 19,267 1,353 16,463

Total 35,969 46,088 40,764 18,898 1,553 17,377

6�


reconciliation of the net surplus from operations with the net cash flows from operating activities



$000 $000 $000 $000 $000 $000

NetSurplus 30,457 16,782 20,889 16,650 9,510 16,980

Plus(Less)Non-cashItems

Non-cash Consideration for 56 (100) (1,326) (142)

Intellectual Property

Adjustment to Staff Entitlements 2,560 4,819 2,560 4,819

Adjustment to Investments 1,128 (294) 1,128 (294)

Non-cash Donation to Hocken Collections (1,024) (250) (738)

Depreciation and Fixed Assets Written Off 39,506 38,732 37,426 39,213 38,429 37,103

Loss on Disposal of Fixed Assets 107 13 44 107 13 44

Other Non-cash Items (385) (401) (503)

TotalNon-cashItems 72,405 54,776 60,317 59,658 47,952 58,510

Plus(Less)MovementsinOtherWorkingCapitalItems:

Decrease (Increase) in Accounts Receivable (1,687) 1,353 (5,745) (1,938) 1,136 (5,014)

Decrease (Increase) in Inventory 35 (20) 71 35 (20) 71

Increase (Decrease) in Accounts Payable 430 2,144 5,118 177 2,442 5,520

Increase (Decrease) in Funds Received 6,046 (1,372) 1,314 5,703 (1,374) 1,456

in Advance

TotalMovementsin

OtherWorkingCapitalItems 4,824 2,105 758 3,977 2,184 2,033

NetCashFlowsfromOperatingActivities 77,229 56,881 61,075 63,635 50,136 60,543


�0

statement of commitments and contingencies as at �� december 2006

UniversityandConsolidated

This Year Last Year

$000 $000

commitments

As at 31 December 2006, $9.944 million of capital works,

equipment and software projects were committed for 2007:

Capital Works 8,919 23,369

Equipment and Other 1,025 1,465

9,944 24,834

Non-cancellable property operating leases:

Not later than 1 year 2,457 1,839

Later than one year and not later than two years 1,485 1,521

Later than two years and not later than five years 1,953 1,626

Later than five years 476 482

6,371 5,468

TotalCommitments 16,315 30,302

UniversityandConsolidated

This Year Last Year

$000 $000

contingent liabilities

The University provided a guarantee to the Bank of New Zealand for

a bond given by the bank to the Dunedin City Council over the siting

of some temporary buildings. 50 50

There were several personal grievance claims by employees against the 103 38

University at 31 December 2006.

From 1 August 2000 the University of Otago became an Accident

Compensation Corporation self-insurer. Claims arising from 1 August

2001 to 31 December 2006 are a potential liability to the University

for a period of up to five years. At the end of the five-year period

any outstanding claims are returned to the Accident Compensation

Corporation under the buy-back provisions.

The contingent liability is assessed at 1,250 1,250

��

note �

note 2

note �

notes to and forming part of the financial statements as at �� december 2006



$000 $000 $000 $000 $000 $000

government grants

Vote Education 171,646 168,828 156,134 170,802 168,151 155,556

Vote Health 2,646 2,820 2,815 2,646 2,820 2,815

TotalGovernmentGrants 174,292 171,648 158,949 173,448 170,971 158,371

Vote Education includes funding received from Government by way of the operational bulk grant, which is based on equivalent full-time student (EFTS) numbers and the funding category values of these EFTS, specific purpose supplementary grants and funding received by way of the Performance-Based Research Fund. Vote Health is EFTS funding for postgraduate health education that is clinically based and is funded by the Ministry of Health, through the Clinical Training Agency.

investment income

Bank Term Deposits 5,996 6,737 6,006 5,052 4,894 4,603

Interest from Government and Public Stock 705 602 705

Interest from Corporate Bonds and Notes 2,678 1,717 1,016

Income from Associate Companies 136 91 405

Dividends from New Zealand Company Equities 1,524 1,422 1,158 290

Dividends from Australian Company Equities 409 240 167

Realised Gains on Sale of Equities 1,738 300 633

Unrealised Foreign Exchange Gains 592 (81)

Unrealised Gains on Revaluations of Investments 1,080

TotalInvestmentIncome 13,778 11,109 11,089 5,052 4,894 4,893

other income

Administration Fees Received 250 197 301 538 556 494

Rents Received 40 26 237 40 26 237

Donations Received 53 53

Commissions Received 470 158 158

Sundry 497 93 382 149 93 124

TotalOtherIncome 787 786 1,131 727 675 1,066


�2

note �



$000 $000 $000 $000 $000 $000

required disclosures

Statement of Financial Performance

Total Expenditure includes:

External Audit Fees 140 139 136 105 107 96

Other Services Provided by the Principal Auditor 11 11

Fees Paid to Lay Council Members (see below) 78 92 81 78 92 80

Interest Expense 85 291 63 85 63

Bad Debts Written Off 153 44 147 153 44 147

Directors Remuneration 72 21 71

Depreciation (see Note 8) 39,506 38,732 37,426 39,213 38,429 37,103

Loss on Disposal of Fixed Assets 107 13 44 107 13 44

Lease Payments 3,849 3,849 3,647 3,849 3,849 3,647

The following fees were earned by members of the Council and Committees during the year:

Council/CommitteeMember ThisYear LastYear

$ $ B Aitken 11,400 11,400

L Brown 19,500 19,500

P Chin 2,805 3,570

P Y Y Chong 4,590

E Ellison 3,825 3,570

D Fraser 2,805 3,060

S Gilmore 765

L Isaacs 4,335 4,335

S McLauchlan 4,335 5,355

J Palmer 2,040 1,785

Rev D Capel-Rice 2,040 3,060

K Russell 1,785 1,785

M Sidey 3,315 2,805

K A Smith 4,845 5,865

K M Smith 3,315 2,805

M Stevens 2,295

S Sutton 3,315 5,100

S Turner 255

J Ward 3,315 3,570

TotalEarned 77,565 80,880

Note: Council members who are also employees do not receive attendance fees.

��

The following Directors fees were earned by members of the Council who are directors of companies in the group:

Council/CommitteeMember ThisYear LastYear

$ $

L Brown 20,000 15,000

S McLauchlan 6,000

T Scott 23,000

TotalEarned 26,000 38,000



$000 $000 $000 $000 $000 $000

Depreciation

Equipment 8,319 7,704 7,433 8,154 7,559 7,323

Furniture 1,171 1,083 1,233 1,155 1,067 1,200

Buildings 15,609 15,531 14,917 15,580 15,504 14,898

Library Books 6,481 6,679 6,349 6,471 6,640 6,301

Motor Vehicles 178 190 201 172 184 195

Computers 7,748 7,545 7,293 7,681 7,475 7,186

TotalDepreciation 39,506 38,732 37,426 39,213 38,429 37,103

cash and bank

Bank Current Account 5,197 1,089 1,708 (453) 120 843

Petty Cash Imprest Accounts 83 80 71 84 80 71

TotalCashandBank 5,280 1,169 1,779 (369) 200 914

accounts receivable and prepayments

Trade Debtors 15,046 12,746 13,277 15,046 12,746 13,277

Other Debtors 7,354 7,115 7,781 6,423 5,649 6,254

Prepayments 5,444 5,980 6,096 5,438 5,951 6,061

TotalAccountsReceivableandPrepayments 27,844 25,841 27,154 26,907 24,346 25,592

note �

note 6


��

note �



$000 $000 $000 $000 $000 $000

investments

Investments in Associates 4,421 4,322 3,940

Shareholders Advances 1,120 4,083 2,753

Loans 3,275 3,257 3,325 22,087 23,368 14,956

New Zealand Company Equities 26,576 26,472 25,337 6,695 4,331 4,331

Australian Company Equities 9,667 6,977 6,635

Investment in Government and Public Stock 9,974 3,064 12,802

Investment in Corporate Bonds and Notes 42,873 20,413 16,530

Patents and Goodwill 96 101

TotalInvestments 96,786 64,601 68,670 29,902 31,782 22,040

Cost/ Accumulated This Year Last Year

Valuation Depreciation Book Value Book Value

$000 $000 $000 $000

fixed assets university

Cost:

Land 551

Buildings 18,864 18,864 41,960

Library Books 73,992 42,512 31,480 33,312

Artworks 131

Plant, Equipment, Furniture, Software & Systems 218,808 146,996 71,812 66,517

FixedAssetsatCost 311,664 189,508 122,156 142,471

Valuation:

Land – University-owned 85,697 85,697 55,506

Land – Crown-owned 62,056 62,056 40,194

Buildings 684,868 684,868 545,337

Artworks 9,280 9,280

Hocken Collections 2,061 2,061

Rare Books & Special Library Collections 9,101 9,101 9,027

FixedAssetsatValuation 853,063 853,063 650,064

TotalFixedAssets 1,164,727 189,508 975,219 792,535

Buildings at cost includes $18.864 million (2005: $24.114 million) Construction in Progress. Plant, Equipment, Furniture, Software and Systems includes $3.505 million Equipment in Progress. The University’s accounting policy is to include any Crown-owned land and buildings in its financial statements on the basis that it has assumed all the normal risks and rewards of ownership. The extent of Crown interest in buildings, if any, has not been quantified, and would be subject to agreement with the Ministry of Education.

note �

��

Opening Revaluation Additions Adjustments Depreciation Net Closing

Book Disposals Book

Value Value

$000 $000 $000 $000 $000 $000 $000

fixed asset movements

Land 96,251 45,933 5,569 147,753

Buildings 587,297 102,610 28,613 791 15,579 703,732

Library Books 33,312 6,242 (1,603) 6,471 31,480

Rare Books & Special Library Collections 9,027 65 9 9,101

Artwork 131 9,149 9,280

Hocken Collections 289 178 1,594 2,061

Plant, Equipment, Furniture, Software 66,517 23,348 (791) 17,163 99 71,812

& Systems

TotalFixedAssetMovements 792,535 157,981 64,015 39,213 99 975,219

Adjustments include transfers between fixed asset categories.

Cost/ Accumulated This Year Last Year

Valuation Depreciation Book Value Book Value

$000 $000 $000 $000

fixed assets consolidated

Cost:

Land 551

Buildings 19,091 92 18,999 42,105

Library Books 74,030 42,543 31,487 33,325

Artwork 131

Plant, Equipment, Furniture, Software & Systems 220,663 147,834 72,829 67,444

FixedAssetsatCost 313,784 190,469 123,315 143,556

Valuation:

Land – University-owned 85,697 85,697 55,506

Land – Crown-owned 62,056 62,056 40,194

Buildings 684,868 684,868 545,336

Artwork 9,280 9,280

Rare Books & Special Library Collections 9,101 9,101 9,027

Hocken Collections (Note 15) 106,126 106,126 87,378

FixedAssetsatValuation 957,128 957,128 737,441

TotalFixedAssets 1,270,912 190,469 1,080,443 880,997

Buildings at cost includes $18.864 million (2005: $24.114 million) Construction in Progress. Plant, Equipment, Furniture, Software and Systems includes $3.505 million Equipment in Progress. The University’s accounting policy is to include any Crown-owned land and buildings in its financial statements on the basis that it has assumed all the normal risks and rewards of ownership. The extent of Crown interest in buildings, if any, has not been quantified, and would be subject to agreement with the Ministry of Education.


�6

Opening Revaluation Additions Adjustments Depreciation Net Closing

Book Disposals Book

Value Value

$000 $000 $000 $000 $000 $000 $000

fixed asset movements

Land 96,251 45,933 5,569 147,753

Buildings 587,441 102,610 28,629 791 15,607 703,864

Library Books 33,325 6,246 (1,603) 6,481 31,487

Rare Books & Special Library Collections 9,027 65 9 9,101

Artwork 131 9,149 9,280

Plant, Equipment, Furniture, Software 67,444 23,693 (791) 17,418 99 72,829

& Systems

Hocken Collections 87,378 16,130 1,024 1,594 106,126

Total 880,997 173,822 65,226 39,506 99 1,080,440

Adjustments include transfers between fixed asset categories.

rare books & special library collectionsThe University holds a number of gifted collections of books, manuscripts and artworks within the Central, Medical and

Dental Libraries. The collections were valued at 31 December 1994, based on net current value, by expert University staff

following the generally-accepted methodology employed by the Alexander Turnbull Library. The total valuation of the Rare

Books and Special Collections is $9.101 million (2005: $9.027 million). Additions at cost and adjustments in 2006 were $0.074

million (2005: $0.204 million) (see Note 8).



$000 $000 $000 $000 $000 $000

accounts payable and accruals

Trade Creditors 6,859 7,854 11,980 6,012 7,504 11,707

Other Creditors 10,240 13,086 8,783 10,665 13,311 8,760

Accruals 10,929 6,752 6,667 10,929 6,752 6,667

TotalAccountsPayableandAccruals 28,028 27,692 27,430 27,606 27,567 27,134

funds received in advance

Research Funding 17,947 12,980 12,980 17,947 12,980 12,980

Student Fees 5,295 3,323 4,574 4,093 2,462 3,714

Other 1,575 1,096 1,220 1,575 1,096 1,218

TotalFundsReceivedinAdvance 24,817 17,399 18,774 23,615 16,538 17,912

note �

note �0

note ��

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$000 $000 $000 $000 $000 $000

employee entitlementsCurrentPortionofEmployeeEntitlements:

Annual Leave 20,130 20,956 18,972 19,950 20,767 18,784

Long Service Leave 797 830 1,117 797 830 1,117

Retirement Gratuities 6,016 6,262 5,598 6,016 6,262 5,598

Staff Intellectual Property Entitlements 1,012 1,053 1,183 1,012 1,053 1,183

Other Entitlements 6 7 223 6 7 223

TotalCurrentPortionofEmployeeEntitlements 27,961 29,108 27,093 27,781 28,919 26,905

Non-currentPortionoftheEmployeeEntitlements:

Long Service Leave 702 650 995 702 650 995

Retirement Gratuities 20,458 18,963 17,209 20,458 18,963 17,209

Sick Leave 1,249 1,158 1,845 1,249 1,158 1,845

TotalNon-currentPortionofEmployeeEntitlements 22,409 20,771 20,049 22,409 20,771 20,049

CalculationofSickLeave,LongServiceLeaveandRetirementGratuities

An actuarial assessment of the accrued sick leave, long service leave and retirement gratuities of the University of Otago in

respect of current employees was carried out as at 31 December 2006. A range of discount rates from 4.83% to 6.35% and a

salary growth rate of 2.75% have been applied in the calculation of the non-current sick leave, long service leave and retirement

gratuity entitlements. Discount rates are those assessed as the interest rates (before tax) attaching to Government Stock with

terms to maturity that match, as closely as possible, the terms of the related liabilities. The salary growth rate is based on the

projected long-term annual rate of inflation.



$000 $000 $000 $000 $000 $000

loans and leases

This is represented by:

Loan from NZ Government• 15,309 15,684 6,954 15,309 15,684 6,954

DCC Loan – Leading Thinkers• 500 500 750 500 500 750

Loan from NZ Government – College Merger* 1,200 1,200

TotalLoansandLeases 17,009 16,184 7,704 17,009 16,184 7,704

• Funds have been advanced to the University from the NZ Government and the Dunedin City Council which the University have then on-advanced to the University of Otago Foundation Trust to fund various projects. The loans are interest free and will be progressively forgiven if certain conditions are met.

* Loan from NZ Government – College Merger are funds provided to contribute towards the costs of the merger between the University of Otago and the Dunedin College of Education.

note �2

note ��


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financial instruments

The Group is party to financial instrument arrangements as part of its everyday operations.

To manage and limit the effects of those financial risks, the University Council has approved policy guidelines and authorised the

use of various financial instruments. The financial instruments being utilised at balance date are outlined below.

The principal or contract amounts of derivative financial instruments outstanding at balance date are as follows:

Group University Carrying Fair Carrying Fair

Value Value Value Value

$000 $000 $000 $000

Forward foreign exchange contracts 8,219 7,874 8,219 7,874

foreign exchange risk

The Group has minimal exposure to currency risk from transactions denominated in foreign currencies arising from its

normal trading activities as the Group receives approximately the same value of foreign currency as it pays out.

The Group is exposed to foreign currency risk due to import purchases. The currencies that give rise to currency risk in which

the group primarily deals are US dollars, Great Britain pounds, the Euro and Australian dollars. The Group has a Foreign

Exchange Risk Management Committee who oversee this risk by applying the Foreign Exchange Policy which is approved by

University Council.

At 31 December 2006, the University held US dollars of $US0.019 million (2005: $US0.451 million) within its current and call

deposit accounts. In January 2007, $USnil million was used to pay overseas creditors.

credit risk

The Group incurs credit risk from transactions with trade receivables and financial institutions in the normal course of its

business. Trade receivables constitute a minimal concentration of credit risk due to the large number of customers included in

the Group’s customer base.

The Group consults with professional investment advisors and has an investment policy which is regularly reviewed. The

Group places its investments with institutions that have a high credit rating. It also reduces its exposure to risk by limiting

the amount that can be invested in any one institution. The Group believes that this policy reduces the risk of any loss which

could arise from its investment activities.

interest rate risk

The Group has minimal exposure to interest rate risk from loans.

The loan from the Dunedin City Council is repayable upon demand. Interest is only payable if requested within 10 days at the

end of each quarter. This has not been requested and is not expected to be requested in the future.

The loan from the NZ Government is repayable if certain conditions are not met by the Group. There is no interest payable

on the loan.

fair value

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cashatbank,bankshort-terminvestments,othershort-terminvestments,accountsreceivableandprepayments. The estimated fair values of these classes of financial instruments are the same as the carrying value in the Statement of

Financial Position. As such they have been excluded from the table below.

investments

New Zealand Government Securities, State Owned Enterprises stock, local authority stock, bank bonds, commercial bonds

and listed equities held by Trust funds. The fair values of these investments are based on quoted market prices at balance date.

The fair value of all other investments is equivalent to the carrying amount disclosed in the Statement of Financial Position.

The Group owns 8,361,000 shares in Blis Technologies Limited. At 31 December 2006, 8,361,000 shares were adjusted from

$0.15 per share to the market value of $0.07 per share, resulting in a decrease in fair value of $668,880.

The Group owns 12,904,657 shares in Pacific Edge Biotechnology Limited. At 31 December 2006, 10,000,000 shares were

adjusted from $0.20 per share to the market value of $0.15 per share, resulting in a decrease in fair value of $500,000. The

remaining 2,904,657 shares are owned by the University Trusts and are recorded at the cost price of $0.15 per share.

note ��

��

investments in associates

The eliminated fair value of investment in Associates is recorded as the Group’s share of equity in the respective companies.

loans

The fair value of loans has been estimated to be the same as the carrying value in the Statement of Financial Position.

fair value summary ThisYear LastYear Carrying Fair Carrying Fair

Value Value Value Value

$000 $000 $000 $000

Investments

Australian Equities 9,667 13,247 6,635 8,422

Government and Public Stock 9,974 9,827 12,802 12,689

New Zealand Equities 26,576 29,990 25,337 28,341

Corporate Bonds and Notes 42,873 42,592 16,530 16,643

Investments in Associates 4,421 4,421 3,940 3,940

Patents and Goodwill 101 101

Loans 3,275 3,270 3,325 3,325

Total 96,786 103,347 68,670 73,461

Loans

Loan from Dunedin City Council 500 750

Loan from NZ Government 15,309 6,954

College of Education Merger 1,200

Total 17,009 7,704

weighted average effective interest rate

Consolidated University This Year Last Year This Year Last Year

Short-term Deposits 7.04% 6.78% 7.63% 7.07%

Long-term Deposits 7.51% 7.53%

hocken collections ThisYear LastYear

$000 $000

Opening Balance 87,378 86,640

Donated Hocken Additions 1,024 738

Transfers from University General Collection 1,594Revaluation 16,130

106,126 87,378

being:

Assets Held in Trust 104,065 87,378

Assets Owned by the University 2,061

Total 106,126 87,378

note ��


�0

note �6

The University holds in Trust a national archival collection of books and artworks known as the Hocken Collections. Items

included in the collections are acquired by gift, bequest and purchase. Items are also accepted on deposit where ownership is

retained by the depositor.

In addition to the items held in trust, items purchased by the University are housed at the Hocken Collections. In prior years

these items have been accounted for as part of the University’s Library collections. However, in 2006, these were reclassified

as Hocken Collections assets.

In 2006 the collection was valued by Peter Webb Galleries Limited, and in accordance with Financial Reporting Standard 3

“Accounting for Property, Plant and Equipment”, the book value of the assets was increased by $16.130 million (comprising

assets held in Trust $15.841 million and University-owned items $289,000).

The University has included the valuation of the owned and deposited items in the total above as it believes that the Hocken

Library is in substance the owner of all items in the collection. The total collections includes deposited items valued at $23.167

million (2005: $33.756 million).

costing of outputs

definitions

The University’s outputs as defined by University Council are:

~ Teaching, Learning and Assessment

~ Research (includes Postgraduate Teaching)

~ Community Service.

Teaching is defined as the transfer of knowledge (to students), learning is the acquisition of knowledge (by students) and

assesment the means by which this acquisition is tested. A key characteristic of University teaching is the fact that it is delivered

by staff active in research and it is thus directly informed by research and scholarship. This section of the Statement of Service

Performance considers only that teaching delivered to formally enrolled students. This teaching is normally delivered as a self-

contained course counting towards a degree, diploma or certificate qualification and may include teaching delivered by way of

lecture, laboratory, tutorial, fieldwork, self-study and electronic means.

Research is defined as the generation of knowledge. Research may take many forms across different disciplines, but common

features are a systematic and disciplined methodology and a commitment to the publication of outcomes and peer review.

Research may be funded through competitively awarded grants – internal or external – or as part of the general activities of

an academic staff member.

Postgraduate Teaching is advanced teaching in which students receive instruction in research methodology, training in the use

of research techniques, and gain experience in undertaking original research.

Community Service is defined as the transfer and application of knowledge for the benefit of the wider community and is

closely linked to the University’s recognised role as a critic and conscience of society. It includes the delivery of continuing

education courses to members of the community, service on government and other public sector boards and advisory groups,

presentations to non-University groups, involvement in community issues and projects, and staff comment in the media on

areas of professional expertise. It also includes service to the wider academic community through service in professional

organisations and on the editorial boards of publications.

methodology

The costing model adopted to calculate the value of each output uses the following methodology:

~ The University’s gross costs less internal recoveries have been allocated to the outputs to provide the total costs of outputs

for each teaching and research division. Wherever possible, costs are attributed directly to the relevant output. Costs not

attributed directly within the teaching and research divisions have been allocated to the outputs based on the estimated

time spent on each activity within the output by each teaching department.

~ The estimated staff time spent on teaching, research and community service is based on the results of questionnaires

completed by all academic departments.

~ The costs of the service divisions are charged direct to the outputs, wherever possible, on the basis of user-pays. The

balance of costs not charged in this manner are allocated to the teaching and research divisions (see Note 17) and then

allocated to the outputs within each of these divisions. This is completed using the net cost of services.

��

cost drivers

Where possible, the full costs of services provided by units in the service divisions are charged direct to users and their outputs

on the basis of user-pays. The balance of costs not charged in this manner are allocated to the outputs of the University (see

Note 16) using the following cost drivers:

Equivalent Full-time Students Used for Student Services (including Careers Office, Student Health and

Counselling, Recreation Services, Disabilities Office, Union Student

Services), Teaching Facilities, Contact Centre, Student Administration,

Student Finance Services, Vice-Chancellor’s Office and the Planning,

Support and Funding Office.

Staff Appointments and Terminations Used for Human Resources Client Services.

Full-time Equivalent Staff Used for Human Resources Directorate, Human Resources Training Office

and Occupational Health and Safety.

Academic Full-time Equivalent Staff Used for Deputy Vice-Chancellor (Research).

Staff Numbers (headcount) Used for Academic Division including: Higher Education Development

Centre, Academic Committees, Quality Advancement and Human

Resources Management Information System.

Space in Square Metres Used for Property Services including: Contracting, Project Planning

& Development, Operations, Technical Services and the Property

Management Unit.

Cost of Services Expenditure Used for Financial Services including: Financial Accounting, Budget

Services, Treasury Accounting, Financial Systems and Data Management,

the Procurement Office and Projects and Asset Management.

90% Equivalent Full-time Students and 10% Used for Marketing and Communications (including Marketing Services,

equally to Teaching and Research Divisions Alumni, Schools Liaison, Communications, Wellington Centre and

Auckland Campus), Internal Audit, Corporate and Secretary to Council.

65% Equivalent Full-time Students and 35% Used for Information Technology Services (including Computing Services,

equally to Teaching and Research Divisions User Services, IT Policy, Administrative Technology Services, Helpdesk,

Technical Services and e-Learning Support), Risk Management

Committee, Library, Operations Divisional Office and University Press.

Mäori Students (headcount) Used for Mäori Centre.

Pacific Islands Students (headcount) Used for Pacific Islands Centre.

2/3 International Students and 1/3 equally Used for International Office.

to Teaching and Research Divisions

14% Commercial Activity Income and 86% Used for Research and Enterprise Office and Management Accounting

Externally-funded Research Grants Services.

note ��


�2

related party information

crown /government

The Government influences the role of the University and Group as well as being a major source of revenue.While the University

and Group enters into numerous transactions with Government departments and other Crown agencies, they are on an arm’s

length basis and, where those parties are acting in the course of their normal dealings, are not considered to be related party

transactions.

inter-group

The University has executed transactions with University of Otago Holdings Limited (UOHL). These consist of loans and

advances which are interest-free, except for a short-term advance for which interest is payable at the University’s borrowing

rate plus 1% (interest received in 2006: $205,000 (2005: $176,987)), and payments received for accounting and secretarial

services ($25,000 in 2006 (2005: $25,000)). UOHL also has a current account with the University ($8,000 in 2006 (2005:

$14,000)) which is interest-free. The University wrote down a term loan to UOHL by $879,000, as it was agreed the loan is

to match the value of Otago Innovation Limited’s (OIL) shareholdings in BLIS and PEBL. The University converted $2.488

million short-term advances to equity and invested a further $325,000 of equity into UOHL.

During the year the University entered into transactions with University of Otago Foundation Studies Limited (FSL), a fully-

owned subsidiary of University of Otago Holdings Limited. The transactions were made on commercial terms and conditions.

The University paid FSL $153,493 commission (2005: $256,050) and was paid $400,722 for rent (2005:$440,000) and $18,000

(2005: nil) for administration services by FSL. FSL also owed the University $65,620 for creditors paid on its behalf (2005:

$78,000) and the University owed FSL commissions of $153,493.

During the year the University entered into transactions with University Union Limited (UUL), an associate company of

University of Otago Holdings Limited. The transactions were made on commercial terms and conditions. The University

paid UUL $312,320 for rent (2005: $225,689). University Union Limited paid the University of Otago ground rent of $99,320

(2005: $79,121).

The University entered into transactions with OIL, the total value of goods and services being $470,283 in 2006 (2005:

$372,000). All transactions were on commercial terms and conditions. OIL owed the University $80,832 at balance date.

During the year the University entered into transactions with Immune Solutions Limited, a wholly-owned subsidiary of OIL.

Immune Solutions purchased goods and services from the University to the value of $35,566 (2005: $28,342). All transactions

were on commercial terms and conditions. At balance date, the amount owing to the University was $3,479 (2005: $2,264).

During the year the University entered into transactions with Iso-trace Limited, a wholly-owned subsidiary of OIL. Iso-trace

Limited purchased goods and services from the University to the value of $127,241 (2005: $111,093). All transactions were on

commercial terms and conditions. At balance date, the amount owing to the University was $15,794 (2005: $28,207).

The University entered into transactions with its Trusts. These were made on commercial terms and conditions. The Trusts

paid the University investment management fees of $346,519 (2005: $286,122) and distributed $4,657,583 to the University

(2005: $2,940,405). The Trusts have a current account with the University, the balance of which as at 31 December 2006 was

$554,913.

note ��

��

related party transactions

Councillors Year:2006 Year:2005 Purchased Purchased Owed by Owed to Purchased Purchased Owed by Owed to

by University from University University by University from University University

during year University at Balance at Balance during year University at Balance at Balance

during year Date Date during year Date Date

Value of Transactions (GST Inclusive) Value of Transactions (GST Inclusive) MrLBrown University of Otago Holdings Ltd (C)* 230,000 8,000 201,987 14,000 Technology Holdings Ltd (C) 101 Mornington PHO Trust (C) 34,610 88 20,700 870 32 University of Otago Foundation Trust (C) 2,452,542 90,454 140,424 393,310 35,490 Dunedin International Airport Ltd (D) 4,890 5,900 788 Otago Innovation Limited (C) 384,356 80,832 372,000 Otago Medical Research Foundation (Councillor) 180,732 23,612 307,424 22,958 Mercy Hospital Dunedin Ltd (D) 25,720 18,957 2,205 20,460 23,759 5,760 1,710 Deloitte (Consultant - Ceased 31/5/06) 296,489 3,375 510,600 4,198 76,920 E M Irvine Family Trust (Trustee) 32,560 35,273

MrPeterWHChin Gambling Commission (C) 11,239 Dunedin City Council (Mayor of Dunedin) ^ 2,451,507 27,521 9,279 15,242 1,789,688 60,777 69,243 11,384

MrPaulYYChong Planet Media Dunedin Ltd (D) 99,290 25,018 35,578 45 127,940 25,154 8,465 814 University Union Ltd (D) 351,360 19,647 291,776 8,616 Unipol Recreation Ltd (D) 914 365

MrEdwardEllison Kai Tahu Ki Otago Ltd (C) 270 Weller Ltd (D) (S) 450

MrStuartMcLauchlan Highlanders Franchise Ltd (C) 1,200 Highlanders Trust (C) 725 Institute of Directors Otago & Southland (C) 310 Dunedin Casinos Ltd (D) 1,003 Scenic Circle Hotels Ltd (D) 1,610 17,930 Dunedin International Airport Ltd (D) 4,890 5,900 788 AD Instruments PTY Limited (D) 84,692 2,988 1,251 333,580 692 628 2,538 Cargill Hotel 2002 Ltd (D) 12,040 507 36,590 446 University of Otago Foundation Studies Ltd (D) 153,493 418,722 153,493 65,620 256,050 440,000 78,000

MrJamesPalmer Russell McVeagh (Partner) 74,100 5,810

MrMichaelSidey Forsyth Barr Ltd (Vice-Chairman) (S) 6,694 8,200 10,051 Salvation Army Advisory Board (D) 150 98 365 98 NZ Academy of Sport-South Island (D) 5,710 309,281 (2,149) 2,540 5,651 2,550 365

ProfessorDavidSkegg University of Otago Holdings Ltd (D)* 230,000 8,000 201,987 14,000 University of Otago Foundation Studies Ltd (D) 153,493 418,722 153,493 65,620 256,050 440,000 78,000

MsKMSmith NZ Academy of Sport-South Island (CEO) 5,710 309,281 (2,149) 2,540 5,651 2,550 365

MrStephenJSutton University Book Shop (Otago) (D) 251,310 48,911 6,265 108 224,620 45,588 12,744 (299)

MrJohnFWard Venture Southland (D) 805 Otago Cricket Association (D) 180 69 90

C = Chairman; D = Director; S = Shareholder * The University wrote down a term loan to UOHL by $879,000, as it was agreed the loan is to match the value of OIL’s shareholdings in BLIS and PEBL. The University converted $2,488,000 short-term advances to equity, and invested a further $325,000 of equity into UOHL. ^ Funds have been advanced to the University from the Dunedin City Council which the University have then on-advanced to the University of Otago Foundation Trust to fund various projects. Refer to Note 13. The University also has a contingent liability of $50,000 to the Dunedin City Council. Refer to the Statement of Contingency.


��

impact of the adoption of international financial reporting standards

In December 2002 the Accounting Standards Review Board (“ASRB”) announced that New Zealand reporting entities would be

required to apply New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”) for reporting periods

commencing on or after 1 January 2007. The ASRB also allowed the option of adopting NZ IFRS earlier to the mandatory

adoption date, allowing adoption from 1 January 2005.

The University of Otago has determined that the University and Group are Public Benefit Entities as defined by NZ IFRS as the

focus of the university is to provide educational and research services to the community. The University has also determined

that it will not early adopt NZ IFRS. As a consequence of this decision, the University will report in compliance with NZ IFRS

(with Public Benefit Entity exemptions) for the first time for the year ended 31 December 2007.

The University has been working jointly with six other universities in New Zealand to identify specific issues arising from the

transition to NZ IFRS that will impact the sector. The Audit Committee of the University is provided with progress reports

from this working group and will be involved in all key decisions in regards to Accounting Policies.

The sector working group has completed its initial impact assessment. The University has completed work to determine that

NZ IFRS will have an impact on income, due to the recognition of the full amount of pledged donations and Trust investment

revaluations. The Statement of Financial Position will also be affected in that software will be re-classified to internally and

externally generated intangible assets and the Hocken Collections and University artworks will be revalued. These revaluations

will be treated as deemed cost.

Future developments of the currently adopted NZ IFRS may take place prior to the University’s adoption in 2007. Therefore,

the actual impact of adopting NZ IFRS may vary from the information presented.

post-balance date event

On 1 January 2007, the Dunedin College of Education merged with the University of Otago to become the University of Otago

College of Education (Te Kura Akau Taitoka) within the Division of Humanities.

note ��

note 20

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�6

audit report

to the readers of university of otago and group’s financial statements and performance information for the year ended �� december 2006

The Auditor-General is the auditor of University of Otago (the University) and Group. The Auditor-General has appointed me, K J Boddy, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and statement of service performance of the University and Group, on his behalf, for the year ended 31 December 2006.

unqualified opinion

In our opinion the financial statements of the University and Group on pages 24, 29, 34 and 59 to 84:

• comply with generally accepted accounting practice in New Zealand; and

• fairly reflect:

~ the University and Group’s financial position as at 31 December 2006;

~ the results of operations and cash flows for the year ended on that date; and

~ the performance information of the University and Group on pages 36 to 49 fairly reflects its service performance achievements measured against the performance targets adopted for the year ended on that date.

The audit was completed on 14 March 2007 and is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and the Auditor, and explain our independence.

basis of opinion

We carried out the audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards.

We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and statement of service performance did not have material misstatements whether caused by fraud or error.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. We assessed the results of those procedures in forming our opinion.

Audit procedures generally include:

~ determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data;

~ verifying samples of transactions and account balances;

~ performing analyses to identify anomalies in the reported data;

~ reviewing significant estimates and judgements made by the Council;

~ confirming year-end balances;

~ determining whether accounting policies are appropriate and consistently applied; and

~ determining whether all financial statement disclosures are adequate.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance.

We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.

��

responsibilities of the council and the auditor

The Council is responsible for preparing financial statements in accordance with generally accepted accounting practice in New Zealand. Those financial statements must fairly reflect the financial position of the University and Group as at 31 December 2006. They must also fairly reflect the results of its operations and cash flows for the year ended on that date. The Council is also responsible for preparing performance information that fairly reflects the service performance achievements for the year ended 31 December 2006. The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004.

We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.

independence

When carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand.

In addition to the audit we have carried out assignments in the areas of:

~ auditing the Chief Executive Officer’s declaration on the Performance-Based Research Fund External Research Income;

~ reviewing compliance with the requirements of the United States Department of Education in respect of the Federal Family Education Loan Programme.

These engagements are compatible with the above mentioned independence requirements. Other than the audit and these assignments, we have no relationship with or interests in the University or any of its

subsidiaries.

K J Boddy

Audit New Zealand

On behalf of the Auditor-General

Christchurch, New Zealand

matters relating to the electronic presentation of the audited financial statements

This audit report relates to the financial statements of the University of Otago and Group for the year ended 31

December 2006 included on the University’s web site. The University’s Council is responsible for the maintenance

and integrity of the University’s web site. We have not been engaged to report on the integrity of the University’s web

site. We accept no responsibility for any changes that may have occurred to the financial statements since they were

initially presented on the web site.

The audit report refers only to the financial statements named above. It does not provide an opinion on any other

information which may have been hyperlinked to/from these financial statements. If readers of this report are

concerned with the inherent risks arising from electronic data communication they should refer to the published hard

copy of the audited financial statements and related audit report dated 14 March 2007 to confirm the information

included in the audited financial statements presented on this web site.

Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from

legislation in other jurisdictions.


��

��

summary facts and figures

student enrolments

2006 2005 2004 2003 2002

EquivalentFull-timeStudents(EFTS)

Commerce 3,568 3,636 3,712 3,460 3,205

Health Sciences 4,690 4,618 4,246 4,059 3,856

Humanities 4,918 5,076 5,111 4,917 4,569

Sciences 4,241 4,371 4,344 4,196 3,993

Other University* 32 38 36 4 0

Subtotal 17,449 17,739 17,448 16632 15,736

OtherGroupEFTS** 131 91 94 134 113

TotalEFTS 17,580 17,830 17,543 16,766 15,736

* Other University EFTS comprise continuing education EFTS not allocated to departments within the four academic

divisions.

** Other Group EFTS comprise domestic EFTS enrolled in the Foundation Studies programme of the University subsidiary

Foundation Studies Limited, law professional EFTS and, from 2002-2003, students in the Overseas Trained Doctors

Bridging Programme.

EFTSbyType(UniversityOnly)

Domestic Undergraduate 13,045 13,220 13,151 12,943 12,377

Domestic Postgraduate 2,529 2,415 2,314 2,239 2,219

TotalDomestic 15,574 15,635 15,465 15,182 14,596

International Undergraduate 1,679 1,863 1,733 1,238 878

International Postgraduate 196 241 250 212 149

Total International 1,875 2,104 1,983 1,450 1,027

TotalEFTS 17,449 17,739 17,448 16,632 15,623

EnrolmentbyQualificationType(Heads)

Doctoral 935 829 755 723 723

Masters 1,052 1,108 1,060 994 1,029

Bachelors Honours 736 769 771 763 815

Bachelors Ordinary 12,868 12,939 12,711 12,186 11,595

Postgraduate Diplomas 1,276 1,367 1,386 1,378 1,349

Postgraduate Certificates 435 424 289 272 281

Undergraduate Diplomas 159 188 257 262 278

Undergraduate Certificates 57 51 53 75 76

Intermediates 965 991 1,003 909 759

Miscellaneous 1,235 1,305 1,324 1,290 1,086

Subdegree 135 86 98 75 35

TotalEnrolments 19,853 20,057 19,707 18,927 18,026


�0

2006 2005 2004 2003 2002

Full-time&Part-timeStudents

Full-time 13,936 14,055 13,937 13,235 12,376

Part-time 5,917 6,002 5,770 5,692 5,650

Total 19,853 20,057 19,707 18,927 18,026

Female&MaleStudents

Female 11,154 11,314 11,019 10,561 9,974

Male 8,699 8,743 8,688 8,366 8,052

Total 19,853 20,057 19,707 18,927 18,026

First-Year&ReturningStudents

First-Year 3,812 3,966 4,112 4,020 3,766

Returning 16,041 16,091 15,595 14,907 14,260

Total 19,853 20,057 19,707 18,927 18,026

EthnicityofStudents

European/Pakeha 68.3% 69.1% 69.5% 71.8% 73.3%

Mäori 6.4% 6.2% 6.1% 6.3% 6.5%

Asian 16.5% 16.1% 15.2% 13.5% 12.6%

Pacific Islanders 2.6% 2.5% 2.5% 2.4% 2.4%

Other / unknown 6.2% 6.1% 6.6% 5.9% 5.3%

Total 100.0% 100.0% 100.0% 100.0% 100.0%

Note: Ethnic data are expressed as a percentage because students may identify with more than one ethnic group.

HomeAreaofStudents

Dunedin 4,915 5,022 4,028 4,733 4,872

Otago/Southland 1,910 1,987 2,219 2,113 2,116

Remainder of South Island 3,101 3,130 3,109 2,911 2,863

North Island 7,146 7,029 7,224 6,609 6,253

Overseas (including NZ Citizens Overseas) 2,768 2,851 2,908 2,295 1,779

Unknown 13 38 219 266 143

Total 19,853 20,057 19,707 18,927 18,026

Note: The majority of NZ Citizens Overseas included (101 in 2006) listed their home area as Australia. Conversely, 221 of the 349 Australian Citizens who enrolled in 2006 were normally resident in New Zealand prior to commencing University study, and so listed a New Zealand home area.

InternationalStudents

Undergraduate 2,272 2,395 2,277 1,745 1,220

Postgraduate 387 325 327 273 223

Total 2,660 2,720 2,604 2,018 1,443

��

2006 2005 2004 2003 2002

InternationalStudentsbyHomeCountry

China 625 700 616 359 171

USA 561 626 688 525 354

Malaysia 239 228 175 118 121

Germany 174 167 158 110 76

Japan 85 59 50 52 47

Korea (South) 82 74 50 40 25

Canada 73 83 79 62 36

Hong Kong 72 85 82 82 63

Saudi Arabia 59 42 37 39 31

Singapore 53 48 39 38 32

France 49 36 26 20 13

England 46 30 28 30 22

Thailand 43 45 44 45 41

Brunei 43 41 32 22 16

Taiwan 34 30 28 27 24

India 29 24 38 18 6

Fiji 27 41 43 47 42

Norway 24 30 58 48 47

Seychelles 24 30 28 23 24

Samoa 20 16 22 22 22

Other 298 285 283 291 230

Total 2,660 2,720 2,604 2,018 1,443

Note: Australian,Tokelauan and Cook Islands’ students - whether resident in their home country or New Zealand prior to commencing study - are not counted as international students, and so are not included in the above figures.

Students’AccommodationStatus Own Home (including renting) 2,950 3,035 2,935 2,594 2,613

At Parents’ Home 1,282 1,284 1,259 1,187 1,131

College 3,022 2,874 2,892 2,821 2,672

Private Board 287 310 283 330 264

Sharing (flatting) 11,067 11,332 10,986 10,569 9,876

Other 499 543 441 512 434

Unknown 743 679 780 914 1,036

Total 19,853 20,057 19,576 18,927 18,026

HomeAreaofFirst-yearStudents

Dunedin 767 788 699 807 776

Otago/Southland 435 454 484 471 472

Remainder of South Island 644 712 710 666 673

North Island 1,647 1,583 1,647 1,602 1,458

Overseas (including NZ Citizens Overseas) 319 429 572 411 312

Unknown 0 0 0 63 75

Total 3,812 3,966 4,112 4,020 3,766

Note: The majority of first-year NZ Citizens Overseas (25 in 2006) listed their home area as Australia. Conversely, 40 of the 68 first-year Australian Citizens who enrolled in 2006 were normally resident in New Zealand prior to commencing University study, and so listed a New Zealand home area.


�2

2006 2005 2004 2003 2002

HighestEntranceQualificationofFirst-yearStudents

NCEA (Level 3) or Equivalent* 2,417 2,252 0 0 0

A Bursary 0 0 1,017 981 869

B Bursary 0 0 990 1,008 927

Entrance Qualification from UB/US 124 351 548 612 540

Higher School Certificate 0 0 190 202 184

University Entrance 66 69 80 83 123

Ad Eundem Entrance Level 401 461 564 335 214

Ad Eundem with Credit 46 70 47 79 90

Ad Eundem Graduate 51 53 38 57 93

Ad Eundem 8 22 30 7 11

Special Admission 436 490 459 506 547

Provisional/ Discretionary Entrance 139 145 70 139 160

Unknown 124 53 79 11 8

Total 3,812 3,966 4,112 4,020 3,766

* Includes students who would have previously entered with A or B Bursary.

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academic attainment

2006 2005 2004 2003 2002

number of graduates

Commerce

~ undergraduate diplomas & certificates 2 2 5 0 0

~ undergraduate degrees 821 715 669 641 615

~ postgraduate diplomas & certificates 42 66 39 47 28

~ postgraduate degrees 63 82 54 62 69

TotalCommerceGraduates 928 865 767 750 712

HealthSciences


~ undergraduate degrees 609 550 526 511 504



TotalHealthSciencesGraduates 1,222 1,140 1,104 1,046 1,158

Humanities


~ undergraduate degrees 1,037 973 901 893 878



TotalHumanitiesGraduates 1,254 1,189 1,110 1,146 1,031

Sciences


~ undergraduate degrees 1,014 864 827 799 771



TotalSciencesGraduates 1,307 1,156 1,107 1,046 1,002

Interdivisional(DiplomaforGraduates)


TotalInterdivisionalGraduates 173 184 199 199 225

TotalUniversity


~ undergraduate degrees 3,481 3,102 2,923 2,844 2,768



GrandTotalUniversityGraduates 4,884 4,534 4,288 4,187 4,128


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2006 2005 2004 2003 2002

Degrees,DiplomasandCertificatesCompletedper100EFTSEnrolled

Commerce 26.0 23.8 20.7 21.7 22.2

Health Sciences 26.1 24.7 26.0 25.8 30.0

Humanities 25.5 23.4 21.7 23.3 22.6

Sciences 30.8 26.5 25.5 24.9 25.1

Total 27.8 25.4 24.4 25.0 26.2

ExaminationPass,ProgressionandAttritionRates

Commerce

Entered 22,593 23,321 23,407 23,165 21,521

Sat 22,168 23,004 22,791 22,760 19,845

Passed 18,986 19,713 19,472 19,191 17,809

Pass Rate 85.7% 85.7% 85.4% 84.3% 89.7%

Progression Rate 84.0% 84.5% 83.2% 82.8% 82.8%

Attrition Rate 1.9% 1.4% 2.6% 1.7% 7.8%

HealthSciences

Entered 23,175 19,794 20,544 16,629 16,811

Sat 22,915 19,591 20,352 16,539 16,456

Passed 20,851 18,025 18,642 15,379 15,712

Pass Rate 91.0% 92.0% 91.6% 93.0% 95.5%


Attrition Rate 1.1% 1.0% 0.9% 0.5% 2.1%

Humanities

Entered 28,687 29,680 29,144 28,247 26,315

Sat 28,583 29,578 28,962 28,096 24,172

Passed 25,253 25,846 25,351 24,324 22,675

Pass Rate 88.4% 87.4% 87.5% 86.6% 93.8%


Attrition Rate 0.4% 0.3% 0.6% 0.5% 8.1%

Sciences

Entered 23,404 25,743 25,447 26,194 24,743

Sat 22,691 25,203 24,613 25,323 23,118

Passed 19,710 21,674 21,236 22,367 21,007

Pass Rate 86.9% 86.0% 83.9% 88.3% 90.9%


Attrition Rate 3.1% 2.1% 3.6% 3.3% 6.6%

Other(FoundationStudies)

Entered 779 555 553 490 325

Sat 556 454 365 411 62

Passed 382 350 297 326 62

Pass Rate 68.7% 77.1% 81.4% 79.3% 100.0%


Attrition Rate 28.6% 18.2% 34.0% 16.1% 80.9%

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2006 2005 2004 2003 2002

Total

Entered 97,000 99,093 99,095 94,725 89,715

Sat 95,268 97830 97,083 93,129 83,653

Passed 83,798 85,608 84,998 81,587 77,265

Pass Rate 88.0% 87.5% 87.6% 87.6% 92.4%


Attrition Rate 1.8% 1.3% 2.0% 1.7% 6.8%

DestinationofGraduates

Employment Full-time 68.0% 65.1% 61.9% 64.1% n/a

Employment Part-time 15.7% 15.4% 17.6% 17.2% n/a

Study Full-time 21.8% 22.3% 26.8% 22.8% n/a

Study Part-time 9.7% 9.6% 9.5% 8.7% n/a

Seeking Employment 14.5% 15.6% 23.6% 27.1% n/a

Note: Graduate destination data is based on a standard annual survey carried out by all universities. Respondents may select more than one status, so the total response may exceed 100%. No data is available for 2002 as the NZVCC, after reviewing the annual Graduate Destinations survey, cancelled the survey for 2002.

student support services

FinancialAdviceService

Number using service or applying to:

Student Assistance Fund 38 53 51 112 121

Number of Student Assistance Grants 34 46 35 61 59

Net Value of Student Assistance Grants $5,500 $5,744 $3,890 $9,376 $6,362

PostgraduateScholarshipsandAwards

Scholarships and Awards Offered 223 165 179 180 116

Scholarships and Awards Accepted 183 130 151 149 98

Acceptance Rate 82% 79% 84% 83% 84%

staff profile

Full-timeEquivalent(FTE)Academic&ResearchStaff

Female

Vice-Chancellor/Senior Academic Managers 1 1 1 1 1

Professors 24 18 15 14 11

Readers/Associate Professors 18 15 14 12 12

Senior Lecturers 133 113 108 107 96

Lecturers 107 109 110 99 107

Other Teaching & Teaching/Research Staff 118 126 115 117 130

Research-only Staff 185 197 209 141 129

Research Support Staff 146 162 113 143 142

TotalFemales 732 741 686 633 626


�6

2006 2005 2004 2003 2002

Male

Vice-Chancellor/Senior Academic Managers 7 6 6 6 6

Professors 124 122 109 100 95

Readers/Associate Professors 91 86 85 81 70

Senior Lecturers 241 235 242 241 247

Lecturers 122 122 119 115 113

Other Teaching & Teaching/Research Staff 74 102 107 123 124

Research-only Staff 162 165 177 148 124

Research Support Staff 54 46 37 73 63

TotalMales 875 884 880 887 842

TotalFTEAcademic&ResearchStaff 1,607 1,625 1,566 1,520 1,468

Full-timeEquivalent(FTE)GeneralStaff

Female

Senior Managers 2 1 0 1 1

Technicians 189 182 170 207 206

Librarians & Library Assistants 89 92 106 104 100

Student, Community & General Services Staff 763 810 843 739 715

TotalFemales 1,043 1,085 1,119 1,051 1,022

Male

Senior Managers 12 10 12 5 7

Technicians 113 128 136 146 146

Librarians & Library Assistants 24 24 25 24 19

Student, Community & General Services Staff 451 434 401 369 333

TotalMales 600 596 574 544 505

TotalFTEGeneralStaff 1,643 1,681 1,693 1,595 1,527

TotalStaff 3,250 3,307 3,259 3,115 2,995

Student-AcademicStaffRatios

Commerce 24.5 24.2 25.6 22.4 19.9

Health Sciences 10.5 11.1 10.2 9.9 9.3

Humanities 21.5 20.5 20.8 20.8 19.7

Sciences 16.2 16.5 14.9 14.6 14.2

Overall 16.1 16.4 15.9 15.3 14.4

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2006 2005 2004 2003 2002

research activities(revisedforpreviousyears)

ResearchOutputsProduced

Commerce 478 397 356 302 340

Health Sciences 2,536 2,405 2,074 1,656 1,525

Humanities 806 802 614 568 505

Sciences 1,118 1,026 928 749 769

Other 34 19 29 39 15

TotalResearchOutputsProduced 4,972 4,649 4,001 3,314 3,154

PublicationsperAcademicStaffMember 3.1 3.0 1.9 2.3 2.1

Note: Publications are shown in the year they are reported in the University’s Research Outputs Report. Actual date of publication or dissemination may differ. In line with Performance-Based Research Fund requirements publications are now termed “research outputs” and contain additional categories to those reported on in previous years. The sum of divisional research outputs is greater than the total number of unique outputs as many outputs are jointly authored by staff in different divisions.

lands and buildings

Land(hectares)

Land Owned by the University 22.9 22.9 22.9 22.4 22.4

Land in Crown Title for the University 8.5 8.5 8.5 8.5 8.5

Endowment Leasehold 25,585.3 25,585.3 25,585.3 25,585.3 25,585.3

TotalLandControlledbytheUniversity 25,616.7 25,616.7 25,616.7 25,616.2 25,616.2

Note: Endowment land is tied up in long-term pastoral leases.

UniversityofOtagoNetAssignableSpace(floorspaceinsquaremetres)

Humanities 14,094 12,999 12,818 12,335 12,335

Sciences 37,626 37,633 37,640 37,703 36,270

Health Sciences 61,243 61,203 60,948 59,633 58,821

Commerce 9,056 9,085 9,286 9,273 9,123

Administration & Other 42,936 42,671 18,072 18,907 17,993

Corporate 4,446 4,445 4,458 4,452 5,638

Information Services 12,065 12,088 36,819 36,981 37,204

TotalNetAssignableSpace 181,466 180,124 180,041 179,284 177,384

Note: University-owned flats and residential colleges total a further 51,480 sq m, Unipol and Clubs & Societies 4,270 sq m (approx).


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2006 2005 2004 2003 2002

library

LibraryCollection

Books (volumes) 958,607 920,264 894,303 867,067 837,661

Serials (volumes) 494,732 510,234 501,382 490,351 480,638

Microfilms 227,476 224,987 222,093 218,419 219,203

Non-book Materials 1,190,299 1,183,331 1,171,637 1,124,754 1,120,232

Total 2,871,114 2,838,816 2,789,415 2,700,591 2,657,734

Print Serials Received 7,234 7,786 8,020 9,496 9,632

Electronic Serials Received 70,536 61,093 61,970 22,042 24,147

Total 77,770 68,879 69,990 31,538 33,779

UserServices

Loans

~ Books 302,719 304,741 309,257 287,044 259,349

~ Periodicals 5,804 6,389 7,694 7,571 10,827

~ Reserve Collection 245,822 274,706 308,905 338,172 365,798

~ Equipment 35,332 40,977 54,641 68,485 57,667

Total 589,677 626,813 680,497 701,272 693,641

Interloans

~ Items Received 10,866 11,694 15,523 19,774 20,815

~ Items Supplied 12,181 13,099 16,217 18,773 19,776

Space

Seating Places Available 3,403 3,379 3,389 3,389 3,338

information technology services

VolumeofComputerandTelecommunicationsTraffic

Off-campus Network Traffic (megabytes) 42,432,129 31,397,634 23,143,498 19,312,468 13,230,306

ITSTrainingandSupportServices

Enquiries Received by ITS Helpdesk 39,870 37,454 36,579 36,680 37,350

Seating Places in Student Computer Laboratories 443 443 443 435 426

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2006 2005 2004 2003 2002

key financial indicators

ValueofOutputperEFTS

Teaching, Learning & Assessment $11,067 $6,883 $7,337 $7,915 $7,521

Research & Postgraduate Teaching $8,103 $10,041 $8,875 $8,137 $9,094

Community Service $1,354 $1,438 $1,054 $1,189 $1,070

2006 2005 2006 2005

Consolidated Consolidated University University

FinancialIndicators

Current Ratio 0.8 0.9 0.6 0.6

(Current Assets: Current Liabilities)

Liquid Ratio 1.7 1.9 1.2 1.2

(Current Assets which will result in cashflow:

Current Liabilities which will result in cashflow)

Level of Debt 3.5% 3.0% 4.2% 3.7%

(Debt to Equity)

Increase in Net Assets 22.3% 2.3% 23.0% 2.3%

Return on Total Assets 2.5% 2.1% 1.6% 2.0%

Return on Revenue 7.1% 5.3% 4.1% 4.4%

Revenue per EFTS n/a n/a $23,478 $21,771

Expenditure per EFTS n/a n/a $22,524 $20,814

Operating Surplus per EFTS n/a n/a $954 $957

Total Assets per EFTS n/a n/a $60,289 $48,383


�00

UniversityConsolidated

0

1.5

2.0

2002 2003 2004 2005 2006

LIQUID RATIO

1.0

0.5


0

0.2

0.4

0.6

0.8

1.0

2002 2003 2004 2005 2006

CURRENT RATIO

0

1

2

3

4

5

6

7

2002 2003 2004 2005 2006

RETURN ON REVENUE


%

8

Current Assets which will result in Cashflow: Current Liabilities which will result in Cashflow

Current Assets: Current Liabilities

Operating Surplus as a % of Total Income

�0�

02002 2003 2004 2005 2006

RETURN ON TOTAL ASSETS

0.5

1

1.5

2

2.5

3

%



0

1.0

2.5

4.0

5.0

2002 2003 2004 2005 2006

LEVEL OF DEBT (DEBT TO EQUITY)

%

0.5

1.5

3.0

4.5

3.5

2.0

0

5,000

10,000

15,000

20,000

25,000

2002 2003 2004 2005 2006

REVENUE PER EFTS

$

Operating Surplus as a % of Total Assets

Total Debt as a % of Net Assets

Total University Revenue Divided by Total University EFTS


�02

14,000

17,000

18,000

19,000

21,000

22,000

23,000

2002 2003 2004 2005 2006

EXPENDITURE PER EFTS

$

20,000

16,000

15,000

0

200

400

600

800

1,000

2002 2003 2004 2005 2006

OPERATING SURPLUS PER EFTS

$

0

10,000

20,000

30,000

40,000

50,000

60,000

2002 2003 2004 2005 2006

TOTAL ASSETS PER EFTS

$

70,000

Total University Assets Divided by Total University EFTS

Total University Expenditure Divided by Total University EFTS

University Operating Surplus Divided by Total University EFTS

�0�


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Documents

o nnual eport 2006 - University of Otago · Ko tä Te Whare Wänanga o Otägo he whanake, he pupuri, he whakatairanga hoki i te mätauranga, i te ihomatua tätari kaupapa, i te